Course Details

1. Identify institutions of the economic system and measure its performance
2. Distinguish models of the market economy and critically assess their merits and drawbacks
3. Construct and analyze the social welfare function
4. Compare and analyze alternatives and imperatives for economic development of different countries
5. Synthesize the knowledge gained in this course with that of other related economics courses, so as to appraise, argue, defend and support personal views, concerning appropriate economic policies for different countries.

Introduction to Comparative Economics: Comparative economics in economic theory. The economic system. Classification of economic systems. Economic systems, models and cases. Traditional Comparative Economics and New Comparative Economics.  

Evaluating and Comparing Economies: Criteria for comparisons. Allocative efficiency. Static and dynamic efficiency. Efficiency in distribution. Measuring economic performance. Economic growth and quality of life. The social welfare functions and the models of the market economy. Classification of the models of the market economy.

The Guided Market Economy: The social welfare function of the guided market economy. Main institutions of the model: nature and features of industrial policies; the business system of the guided market economy; the banking system and capital allocation; main features of the labor market. Globalization and the crisis of the guided market economy in the last decades. Case studies: the Japanese economy, the French economy, the Greek economy. Foundations of the Greek crisis. Alternatives and imperatives for the guided market economy from the perspective of Europe 2020.

The Modified Market Economy: Main features of the modified market economy. Structure and effectiveness of institutions: the stock exchange and capital allocation; the business system. Microeconomic policies. Technological and structural changes in the last decades. Advantages and drawbacks of the modified market economy. Case studies: the economic system of the United States, the British economy.

The Social Market Economy: The social welfare function of the social market economy. Priorities and challenges of the model. Capital allocation and the business system. The importance of associations. Specific features of the labor market. Economic and social outcomes of the model. Case studies: the German economy, the Swedish model.

Main Features of Developing Countries: Defining the developing world. The structural diversity of developing economies. Common characteristics of developing nations. How developing countries today differ from developed countries in their early stages. Incorporation of developing countries in the world economy. Salient features of contemporary trade and investment flows. The role of the MNCs. Export promotion versus import substitution. The industrialisation strategy approach to export policy.  South-South trade and economic integration. The controversies of sustainable development. Financing and reducing payment deficits. IMF stabilisation policies. The Washington consensus. Empirical evidence. Discussion of different approaches to the establishment of new rules of the world economic order. Case studies.

The Command Economy: Main features of the command economy. Institutions of the command economy and their constraints. Economic and social potential of the command economy. Endogenous reasons for the collapse of the command economy.  

Economics of Reform and Transition: The transition to the market economy. Institutional revolution and economic growth. Models of transition. Microeconomic problems of macroeconomic policies. Case studies: the transition in an Eastern European country, the transition in Russia, the Chinese economy.

Globalization and reforms of the models of the market economy: The nature of globalization: technological, institutional and structural changes in the world economy. Confrontation of opposing views on globalization. The role of institutions in the world economy.  Economic reforms - a choice or an imperative. Europe 2020. The single European market and the multiple European problems and challenges.

• Schnitzer M. Comparative Economic Systems. South-Western Publishing, the latest edition

• Dallago B. Comparative Economic Systems and the New Comparative Economics. European Journal of Comparative Economics. Vol.1, no.1, 2004.
• Fukao K., H. Ug Kwon. Why did Japan TFP Growth Slow Down in the Lost Decade. Hitotsubashi University. Discussion Paper 50, Dec. 2004.
• Fukuyama F. The End of History and the Last Man. N. Y. Free Press, 1992.
• Glaeser E., Shleifer A.The Rise of the Regulatory State. Journal of Economic Literature 41, June 2003
• Hayek F. The Constitution of Liberty. Gateway Editions. Ltd. 1960.
• Knack S., F. Keefer. Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures. Econ and Politics 7, Sept. 1999.
• Sen A. Development as Freedom. Oxford University Press: 1999
• Wolf M. Why Globalization Works. Yale University Press: 2004
• Stiglitz J. Globalization and its Discontents, W.W.Norton & Company: 2002.

Ex cathedra lectures and discussions in class, by means of traditional tools or using computer demonstrations. Some of the key issues are revealed on the basis of simulation games.

Auditory exercises, where examples regarding matter represented at the lectures, are solved and further, questions related to particular open-ended topic issues are compiled by the students and answered, during the lecture or assigned as homework.

Topic notes are compiled by students, during the lecture which serve to cover the main issues under consideration and can also be downloaded from the lecturer’s webpage. Further literature search is encouraged by assigning students to identify a specific problem related to some issue, gather relevant scientific information about how others have addressed the problem and report this information in written or orally.

Students’ teams (of two or three individuals) are assigned to study the economic institutions and performance of a chosen country. The case study should be presented in class.