.- Economics PROFESSOR ENRICO BELLINO COURSE AIMS Political economy aims to study the functioning of an “economic system”, that is, the set of subjects involved in the production and consumption of commodities and in the distribution of income. After a brief review of the historical background (the classical school of thought with a particular focus on David Ricardo) we will adopt the usual separation between microeconomics and macroeconomics, typical of the neoclassical approach. Microeconomics deals with the behaviour of single “units” (consumers, firms, workers and capitalists) and their interactions on the markets. Macroeconomics describes the functioning of the system at the aggregate level: the Gross Domestic Product (GDP), the employment level and the rate of unemployment, the price level and the inflation rate, the interest rate, the public debt, the rates of change, etc.. COURSE CONTENT INTRODUCTION – A BRIEF HISTORICAL EXCURSUS - The object of political economy - Classical political economy: Smith, Ricardo and Marx - Neoclassical economics MICROECONOMICS - Consumer theory: preferences, choice, commodities demand functions, factors supply functions - Firms: technology, choice, commodities supply functions, factors demand functions - Perfect competition - General economic equilibrium - Non-competitive markets: monopoly, oligopoly, etc. MACROECONOMICS - Definition of the main aggregate variables - Neoclassical macroeconomic model (full-employment equilibrium) - Keynesian principle of effective demand - Keynesian macroeconomic model (under-employment equilibrium) - Fiscal and monetary policies READING LIST T. COZZI – S. ZAMAGNI, Istituzioni di Economia politica. Un testo europeo, Il Mulino, Bologna, 2003. Alternatively, P. KRUGMAN – R. WELLS – K. GRADDY, L’essenziale dell’Economia, Zanichelli, Seconda edizione, 2012 More detailed information will be given in class and published in the lecturer’s webpage TEACHING METHOD The course will be taught through lectures. An additional practical course will be proposed to students of the “interclasse” degree in Law and economics of banks and financial intermediaries. ASSESSMENT METHOD Written tests. A mid-term exam is also contemplated. Students can meet with Professor Bellino on Thursdays between 11.00 a.m. and 12.00 in the offices of the Faculty of Economics. It is preferable to send an e-mail message to take an appointment.