EC365syllabus

EC365 Economic Institutions in Historical Perspective Fall 1999 TR 12:30-2:00 PM CAS 324

Boston University                                                                                                 Phone: (617)353-4535
Department of Economics                                                                                     E-mail: maristel@bu.edu
270 Bay State Road, Room 310                                                                           Web Page: http://econ.bu.edu/botticini

Office hours: W 12-1 PM & R 3-4 PM

Topics

The course highlights the historical development and role of institutions underlying market economies. Topics will include contract enforcement and trading institutions, financial institutions, property rights in land, environmental resources such as water management and fisheries, economic infrastructure, regulation of labor and capital markets, marriage markets, property rights in children, inheritance rules, and social norms. The course emphasizes the role of institutions fostering (or hindering) market efficiency and the allocation of resources. The analysis starts with the study of institutions that affected the functioning of credit and capital markets in several societies. It then moves to the analysis of labor market institutions such as slavery, serfdom, and agrarian contracts; institutions sustaining the efficient allocation of common goods and resources such as fisheries, grazing lands, mineral lands and oil fields; and institutions, laws, and customs regulating marriage markets, inheritance, and bequest behavior. This course also analyzes institutions that emerged as responses to market failures (i.e. English open fields); and institutions that fostered trade in early and modern periods. Lastly, it studies the origin and development of one of the most important economic institution-- the firm.

Required books (available at Barnes & Noble Bookstore)

Tommasi, M. and K. Ierulli, eds. The New Economics of Human Behavior. Cambridge University Press, 1995. $21.95
Bates, R. and A. Greif. Analytical Narratives. Princeton University Press, 1998. $15.96
Barzel, Y. Economic Analysis of Property Rights. Cambridge University Press, 1997. $17.95
Libecap, G. D. Contracting for Property Rights. Political Economy of Institutions and Decisions. Cambridge [England]; New York: Cambridge University Press, 1989. $16.95.

Further readings and papers will be made available during the lectures. A complete list of readings will be provided during the first lecture.

Evaluation method

Problem sets: 20%
Participation in class discussion: 10%
Midterm: 40%
Term paper: 30%

The topic for the term paper must be approved in advance by the instructor. The paper can be either a survey of existing literature, or can provide an original insight into a specific and well-defined question.

Prize

Among the papers written by students, the instructor will select the best one. This paper will be then submitted to the Annual Cliometric Society Undergraduate Economic History Paper Prize. The Cliometric Society is one of most important associations of economic historians in North America. Each year it evaluates papers written by undergraduates in all U.S. colleges and universities and then select the best paper. The winner receives a cash award and a complimentary one year subscription to the Cliometrics Society. The paper will be also published in the Newsletter of the Cliometric Society, and the abstract will be published in Explorations in Economic History.

Lecture Schedule, Important Announcements, and Rules of the Game

Midterm

The midterm exam is scheduled for November the 2nd (Tuesday). No make-up exams are allowed.

Term Paper

The paper is 15 pages long, double-spaced. The term paper for this course will be like a public good: Groups of five people will be formed and each of them will contribute to write the paper assigned to the group. Economists tell us that in the case of public goods the so-called free-rider problem may emerge: it will be your duty and responsibility to ensure that everybody in your group works hard and diligently (you can use various "carrot-and-stick" kind of incentives to ensure your fellow students' cooperation).

The topic for the paper will be assigned by the instructor together with a bibliography from which you can start investigating the topic assigned. This is the schedule to prepare the paper:

Week I (Sept. 7-9): topics will be assigned to groups together with a bibliography.

Week V (Oct. 5-7): groups will meet with the instructor during the office hours and will show the additional references found. The instructor will help to focus and organize the paper.

Week X (Nov. 11): a first preliminary draft is due. The instructor will read it, and will make comments and suggestions.

Week XII (Nov. 19): a brief (10-15 minutes) presentation of the paper will be made in class.

Week XV (Dec. 13): the paper is due back in the instructor's office December 13 at 9:00 AM.