National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Government of the Russian Federation
National Research University Higher School of Economics
Department of Public Policy
Syllabus of the course:
Economic Institutions and Ethics in Public Policy
Master’s program “Political Analysis and Public Policy”
Political Science (030200.68)
Author of the syllabus:
Edgar Demetrio Tovar García, PhD in economics, etovar@hse.ru
Boris Kashnikov, PhD in philosophy, bkashnikov@hse.ru
Approved by the Department of Public Policy
on (day/month/year) «___»____________ 2014
Head of department:
Nina Belyaeva (signature)
Moscow, 2014
This syllabus cannot be used by other university departments and other higher education
institutions without the explicit permission of the Department of Public Policy.
1
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
1 Scope of use
The present program outlines the requirements for students’ knowledge and skills and the content of
the course.
The syllabus is developed for the department, responsible for teaching the course, professors and
teaching assistants, students of the master’s program ‘Political Analysis and Public Policy’.
This syllabus meets the standards required by:
Standards of National Research University Higher School of Economics of Federal Masters’
Degree Program 030200.68 “Political Science”,
● Master’s program ‘Political Analysis and Public Policy’ of Federal Master’s Degree Program
030200.68 “Political Science”,
● Curriculum of the master’s program ‘Political Analysis and Public Policy’ as of 2014.
●
2 Objectives of the course
● To inculcate in students analytical skills from the new institutional economics, and particularly
from ethics, and their roles in the policy making process.
● To introduce students to basic economics, and to develop and broaden their knowledge of new
institutional economics.
● To obtain basic skills of ethical analysis of conflicts, war, massive violence, and global security.
● To analyze the design of public policy under ethical, economical, and institutional concerns in modern
socio-economic and political systems.
● To show possibilities of the political analysis based on fundamental understanding of structure and
dynamics of ethics, economics, and institutions in their interaction with actors of public policy.
3 Supposed outcomes
As a result of studying of discipline the student should:



Know the theoretical and conceptual framework in institutional economics and ethics, and their
relevance in public policy.
Be able to identify the impact on public policy of institutions, with focus in the impact from ethical
concerns.
Get skills to research problems in the sphere of public policy, using the neo-institutional economic
approach and ethical analysis.
2
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
The students are supposed to adopt the following competences:
Competence
Code
Ability to generate
concepts and theoretical
models, to test new
methods and tools for
professional activities
SC-2
Ability to freely use
Russian and foreign
languages for professional
communication
PC-3
Descriptors (indicators for
achievement the result)
Students give definitions of public
policy, subjects of public policy,
ethics, and institutional
economics.
Students apply ethical and
institutional analysis on public
policy, term paper, and master
thesis.
Students give explanations of the
influence of ethical and
institutional variables on public
policy, in term paper and master
thesis
Educative forms and methods
aimed at generation and
development of the
competence
Review of literature.
Discussion of the essay.
Presentation of research in
the sphere of ethics,
institutional economics, and
public policy.
4 Role of the discipline within the structure of the master program
For specialization 030200.68 “Political Science”, master’s program “Political Analysis and Public Policy”,
in the first year, this is an optional course.
This course is based on the following disciplines:
●
●
●
●
Philosophy.
Political Science
Economics
Sociology
The following knowledge and competences are needed to study the discipline:
●
●
●
●
●
●
The basic skills of philosophical analysis
The basic knowledge of the structure of the political
The knowledge of the basics of international and domestic legislation
Some general knowledge of sociology would help
Basic knowledge of economics
Competences for public policy analysis, using quantitative and qualitative research methods.
Main competences developed by studying this discipline can be used to study the following
discipline:
● Research seminar
● Soft Law and Regulatory Governance
● Think Tanks as Policy Actors
3
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
5 Course plan
№
Topic
Total hours
Work in the class
Lectures
1.
2.
3.
4.
5.
6.
7.
Total:
Basic Economics: Conceptual
framework for institutional
economics
New institutional economics: formal
and informal institutions
Basic Ethics: Conceptual framework
for personal conduct
Normative morals and institutional
design
Ethics for public policy
Institutional design and public policy
Challenges to institutional analysis
Seminars
Independent
work
6
4
8
10
4
4
14
8
4
2
14
8
4
2
14
18
6
10
144
8
4
4
32
8
14
14
14
92
4
20
6 Requirements and grading
Type of
grading
Type of work
1st
year
3 4
Independent
students’ work
8
Homework
7
8
Accumulative
Final
Essay
5
Exam
9
Characteristics
Independent work (IW) for topics 1, 2, 6 and 7: One
page report on the corresponding reading (weekly).
Previuosly to corresponding lesson, students should
submit IW in LMS (HSE Informational Learning
Space)
Two oral presentations of about 10 minutes
10 thousand characters by the middle of the fourth
module.
Test: 90 minutes
4
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
6.1
Course evaluation criteria
1) Independent students’ work (IW)
Independent work for topics 1,2, 6 and 7: Students have to write a report (one page) for each
required reading (article or chapter of the textbook), where the student must identify main research
question, working hypothesis, main objective, methodology, and conclusions. The IW must be sent
by email, previously to the corresponding lesson.
2) Homework (H)
Homework for topics 3-5: Because we will have 2 seminars in the third module. Two oral
presentations of about 10 minutes each are due in the third module for each student. One on one of
the theories of normative morality (third class meeting). One on one the theories of justice (fifth
meeting). The topics will be determined in advance.
3) Essay (ES)
Students have to write an essay (10 thousand characters) by the middle of the fourth module
on one of the topics 3 to 5. The essay is supposed to be a piece of creative work to justify this or
that ethical approach. It may be utilitarianism, deontology, ethical relativism, amoralism, egoism,
theory of justice by John Rawls, or others. It may belong to personal or institutional morality. Facts
should be provided and practical situations analyzed. For example, if one sticks to utilitarianism, the
essay should demonstrate the advantages of this ethical approach to settle the social problems or to
provide the true personal goals to achieve in life. One may give an example of how it works to, say;
arrange distribution of social goods or political institutions in the society. If one sticks to
deontology we would expect the analysis of its capacity to preserve inviolable rights of the citizens,
etc.
4) Final exam (FE)
The final exam consists of open questions about the main concepts and theories in the new
institutional economics, and implications on public policy.
5
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
7 Course description: The content of the course
7.1 Basic economics: Conceptual framework for institutional economics (4
hours)
Basic concepts in economics. Scarcity and efficiency. Microeconomics and Macroeconomics. The market
mechanism. Supply and demand model.
Required readings:
Samuelson, P. A., & Nordhaus, W. D. (1998). Economics (Sixteenth., p. 781). McGraw-Hill.
Mankiw, N. G. (2011). Principles of economics (Sixth., p. 856). South-Western, Cengage Learning.
Optional readings:
Bowles, S. (2004). Microeconomics: behavior, institutions, and evolution (p. 584). Princeton
University Press. Retrieved from
http://books.google.com/books?hl=en&lr=&id=HAiMDU4qv0IC&oi=fnd&pg=PA585&dq=Microe
conomics:+Behavior,+institutions,+and+evolution&ots=BAkOpML98p&sig=XwxZ8l53IPVKNLHyKFVjx6KNWM
7.2 New institutional economics: Formal and informal institutions (12 hours)
The “old” and the “new” institutionalism. The firm, externalities, market, transaction costs, social cost, and
property rights. Organizations, contracts, and institutions. Formal institutions (constitutions, laws, property
rights) and informal institutions (sanctions, taboos, customs, traditions, code of conduct, moral).
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405. Retrieved from
http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937.tb00002.x/full
Coase, R. H. (1960). The Problem of Social Cost. Journal of Law and Economics, 3(1), 1–44.
North, D. C. (1991). Institutions. Journal of Economic Perspectives, 5(1), 97–112.
Parada, J. J. (2002). Original Institutional Economics and New Institutional Economics: Revisiting
the Bridges (Or the Divide). Oeconomicus, 6, 43–61. Retrieved from
http://cas.umkc.edu/econ/_researchCommunity/oeconomicus/VolumeVI/Fall2002/ParadaFalll2002.pdf
Williamson, O. E. (1998). Transaction cost economics: how it works; where it is headed. De
Economist, 146(1), 23–58. Retrieved from
http://link.springer.com/article/10.1023/A:1003263908567
Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of
Economic Literature, 38, 595–613. Retrieved from http://www.jstor.org/stable/2565421
Optional readings:
Coase, R. H. (1998). The New Institutional Economics. American Economic Review, 88(2), 72–74.
DiMaggio, P., & Powell, W. (1991). Introduction. In P. DiMaggio & W. Powell (Eds.), The New
Institutionalism in Organizational Analysis (pp. 1–38). Chicago, IL: University of Chicago Press.
Hodgson, G. M. (1998). The approach of institutional economics. Journal of Economic Literature,
36(1), 166–192. Retrieved from http://www.jstor.org/stable/2564954
Hodgson, G. M. (Ed.). (2002). A modern reader in institutional and evolutionary economics: key
concepts (p. 239). Edward Elgar. Retrieved from
http://books.google.com/books?hl=en&lr=&id=xDBmAwAAQBAJ&oi=fnd&pg=PR1&dq=A+Mo
6
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
dern+Reader+in+Institutional+and+Evolutionary+Economics+Key+Concepts&ots=rmTSoDCf7&sig=LGnAgGyi2MGRYr4qvVMqHgbSYbI
Ménard, C., & Shirley, M. M. (Eds.). (2008). Handbook of new institutional economics (p. 884).
Springer-Verlag Berlin Heidelberg. Retrieved from
http://link.springer.com/content/pdf/10.1007/978-3-540-69305-5.pdf
Rutherford, M. (2001). Institutional economics: then and now. Journal of Economic Perspectives,
15(3), 173–194. Retrieved from http://www.jstor.org/stable/2696562
Staniek, Z. (2010). Diversification of institutional economics. Warsaw Forum of Economic
Sociology, 1(1), 90–116. Retrieved from
http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.ekon-element-000171274067
Williamson, O. E. (1999). Public and private bureaucracies: a transaction cost economics
perspectives. Journal of Law, Economics, and Organization, 15(1), 306–342. Retrieved from
http://jleo.oxfordjournals.org/content/15/1/306.short
Williamson, O. E. (2005). The economics of governance. American Economic Review, 95(2), 1–18.
7.3 Basic Ethics: Conceptual framework for personal conduct (6 hours)
The meaning of Ethics and Morality. Ethical Theory, General Ethics and Individual Ethics. The
nature of moral concepts. Good and Evil. Right and Wrong. The system of ethical categories.
Ethical principles. Ethics and Law. The problem of evil laws. Ethics and customs. The problem of
corrupted customs. Ethics and rational choice theory. The problems of the rationality of evil. The
problem of evil means and the greatest good. Authoritarian morality. The problem of religious
ethics. Moral authoritarianism and fanaticism. The morality of association. The problem of moral
conformism. The morality of principles. Universalizability, Publicity, Overridingness and
Practicality of ethical principles. Autonomy of the ethical person. Ethics and the problem of the
justification of evil. Normative Judgments and Prescriptive Statements. The logic of ethical
inference. Ethical emotivism. The problems of ethical discourse. Egoism, moralism, amoralism and
immoralism. The Golden Rule. Universalism and Absolutism. Cultural Diversity. Relativism and
moral disagreement. Relativism and the problem of tolerance. The problem of the toleration of the
intolerant.
Required readings::
Blackburn, S. Being Good. A Short Introduction to Ethics. Oxford: Oxford Univiversity Press,
2002.
Optional readings:
Narveson, J. This is Ethical Theory. Chicago and La Salle, Illinois: Open Court, 2009
Holmes, R. Basic Moral Philosophy. Belmon, California: Wadsworth Publishing Company, 1993
Frankena, W. Ethics. London, etc.: Prentice-Hall, INC, 1963
Hare, R. Sorting out Ethics. Oxford: Clarendon Press, 1997
Hare, R. Moral Thinking: Its Levels, Method and Point. Oxford: Oxford University Press, 1981.
MacIntyre, A. A Short History of Ethics. A history of moral philosophy from the Homeric age to the
twentieth century. New York, NY: Macmillan Publishing Company, 1996.
MacIntyre, A. Whose Justice? Which Rationality? Notre Dame, Indiana: University of Notre Dame
Press, 1988
7
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
7.4 Normative morals and institutional design (6 hours)
Teleological and deontological theories. The ethics of virtue. The problems of ethical hedonism.
Morality and happiness. Conventionalism in ethics. Utilitarianism. The greatest happiness for the
greatest number principle. Categorical imperative and the problem of moral absolutism. Ethical
relativism.
The positive and negative rights. The problem of social parasitism and rights. The structure and the
development of rights and duties in the society. The problem of envy and social equality. The
problem of distributive justice. The problem of just punishment. Capital punishment. Freedom and
Justice. The moral problems of the welfare state. Feminism and the problems of injustice against
women. Communitarian critique of justice. The Marxian critique of exploitation and alienation in
capitalist society. Anarchy, state and utopia. Just bargaining. The problem of moral politics. The
Just War theory. Realism and the justification of political violence. Pacifism. The political state
and the problem of institutional evil.
Required readings::
Holmes, R. Basic Moral Philosophy. Belmon, California: Wadsworth Publishing Company, 1993
Optional readings:
Narveson, J. This is Ethical Theory. Chicago and La Salle, Illinois: Open Court, 2009
Frankena, W. Ethics. London, etc.: Prentice-Hall, INC, 1963
Hare, R. Sorting out Ethics. Oxford: Clarendon Press, 1997
Hare, R. Moral Thinking: Its Levels, Method and Point. Oxford: Oxford University Press, 1981.
MacIntyre, A. A Short History of Ethics. A history of moral philosophy from the Homeric age to the
twentieth century. New York, NY: Macmillan Publishing Company, 1996.
MacIntyre, A. Whose Justice? Which Rationality? Notre Dame, Indiana: University of Notre Dame
Press, 1988
7.5 Ethics for public policy (8 hours)
The relationships between ethics and public policy. The global starvation and the obligations of
wealthy countries. The public policy regarding abortions. Capital punishment. Poverty line and the
problem of redistribution. Euthanasia. Peace building and national security. Human trafficking and
global slavery. Crime prevention. Social injustice and inequality. Climate change. Developing
nations and foreign aid. Private military companies. The problem of homelessness. National tax
system and the problem of flat or progressive taxation. Law and morality. Corruption. The ethical
matters of secession. Global movements and quest for justice.
Required readings:
Public Policy. Why Ethics Matters? Jonathan Boston, Andrew Bradstock, and David Eng. (Eds.). Canberra:
ANU E Press, 2010.
http://press.anu.edu.au/apps/bookworm/view/Public+Policy%3A+Why+ethics+matters/5251/upfro
nt.xhtml
Optional readings:
Sen, A. The Idea of Justice. London: Allen Lane, 2009.
Pogge, T. World Poverty and Human Rights: Cosmopolitan responsibilities and reforms. 2nd edn.
Cambridge: Polity Press, 2008.
Singer, P. The Life You Can Save. Melbourne: Text: 2009.
8
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
Brock, G. Global Justice: A cosmopolitan account. Oxford: Oxford University Press, 2009.
Nagel, T. The Possibility of Altruism. Oxford: Clarendon. 1970.
M. Clayton and A. Williams (eds). The Ideal of Equality. London: Macmillan, 2007.
Frankfurt, H. 1987. ‘Equality as a moral ideal.’ Ethics 98(1): 21–43.
Kuran, T. Private Truths, Public Lies: The social consequences of preference falsification.
Cambridge, MA: Harvard University Press, 1997.
7.6 Institutional design and public policy (10 hours)
The design of institutional systems, as a major policy tool, to regulate business activities, to
promote development and growth, and to shape public policies in different fields (e.g. banking
policy, urban development, education, and network industry).
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
Optional readings:
Johnson, J. E. (1994). The Russian banking system: Institutional responses to the market
transition∗. Europe-Asia Studies, 46(6), 971–995. doi:10.1080/09668139408412212
Klein Woolthuis, R., Hooimeijer, F., Bossink, B., Mulder, G., & Brouwer, J. (2013). Institutional
entrepreneurship in sustainable urban development: Dutch successes as inspiration for
transformation. Journal of Cleaner Production, 50, 91–100. doi:10.1016/j.jclepro.2012.11.031
Tovar-García, E. D. (2007). Globalización del capital y desarrollo institucional del sistema
financiero. Revista de Economía Institucional, 9(17), 75–107. Retrieved from
http://www.economiainstitucional.com/pdf/No17/etovar17.pdf
7.7 Challenges to institutional analysis (4 hours)
Institutional design. Highlight some of the research directions to be explored in the future.
Required readings:
Brousseau, É., & Glachant, J.-M. (Eds.). (2008). New institutional economics: a guidebook (p. 558).
Cambridge University Press.
8 Teaching Methods and Recommendations
The course is interactive; lectures are combined with discussions of the readings for the
week, followed by presentations. Students are also required to make report and oral presentation of
their homework.
The tentative topics of the essays. The students can choose one of the topics or propose the
topics of their own.

Capital punishment. The ethical analysis.

The moral limits of tolerance.

The possibility of just terrorism.
9
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
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The justice of feminism
The ethics of human rights.
Moral man in immoral society
The justification of torture.
The moral limits of social equality
Environment and moral responsibility
Feminism and justice
The just society
Liberalism and justice
Anarchy and justice
The ethics of pragmatism
Egoism, rationality and publicity
The ethics and Prisoners Dilemma Situation.
The just punishment
The ethics of and arms control
9 Grading
9.1 Provisional Topics for Current Control
Continuously, teachers will evaluate independent students’ work, readings, and presentations.
For example:
Identify methodology in the reading 1
Identify recommendations for policymakers in the reading 1
9.2 Provisional questions for grading estimation
Which is the key difference between the “old” and the “new” institutional economics
Based on R. Coase, define “transaction costs”
Based on O. Williamson, which are the most important categories of property rights?
Based on D. North, define “institutions: formal and informal”
How institutional factors affect the design of public policy?
10 The pattern of forming the final grade
The formula for the accumulated grade is the following
Oaccumulative = 0,3 * Ohomework 1 + 0,3 * Oindependent work + 0,4 * Oessay
The formula for the final grade is the following
Ofinal = 0,6 * Oaccumulative + 0,4 * O finalexam
10
National Research University – Higher School of Economics
Department of Public Policy
Syllabus of the course: “Economic Institutions and Ethics in Public Policy”
Master’s program “Political Analysis and Public Policy”
11 Reading and Materials
See the course description, after each topic you will find it
The next web sites are useful as complementary materials:
International Society for New Institutional Economics (ISNIE)
http://www.isnie.org
European School on New Institutional Economics (ESNIE)
http://esnie.org
Austrian Society for New Institutional Economics (ASNIE)
http://www.univie.ac.at/asnie2013/
The Ronald Coase Institute
http://coase.org/index.htm
Contracting and Organizations Research Center (University of Missouri)
http://cori.missouri.edu
Economics and Institutions WEBSITE - by prof. F. Toboso, University of Valencia, Spain.
http://www.uv.es/ecoinst/
Revista de Economía Institucional (Universidad Externado, Colombia)
http://www.economiainstitucional.com
The following on-line videos and courses are useful as complementary materials:
Институциональная экономика (Institutional economics) by Maria Yudkevich (HSE)
https://class.coursera.org/instec-001
Effect of Institutions on Market Performance. Douglas North, Nobel Laureate, Washington University
http://www.youtube.com/watch?v=A2xhmlpUKd8
Why Institutions Matter (Part 2 of 8). Douglas North. University of the Philippines
http://www.youtube.com/watch?v=sleqhKuq2z0
Ronald Coase: "Markets, Firms and Property Rights"
http://www.youtube.com/watch?v=ZAq06n79QIs
Ronald H. Coase: On Economics (The University of Chicago)
http://www.youtube.com/watch?v=04zFygmeCUA
Interview about the 2009 Prize in Economic Sciences (Nobel Prize)
http://www.youtube.com/watch?v=T4cK6LDQYpg
12 Equipment
Over head projector will be needed for each lecture.
11