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Public Economics and Economic History (A78606) –
Year 2013
Module III: The development of modern market economy, an historical perspective
Lecturer: Dr. Daniele Pozzi,The module will present a long-run perspective on the development of modern capitalism
and the role of State in it. Through the presentation of historical cases, the module will
offer to the students a perspective which highlights complexity in the economic
phenomena, and which stresses the need for an analysis encompassing multiple variables
(culture, society, politics).
11.15- Introduction: adding an historical perspective
12.00 Module goals and guidelines, groups sorting
12.00- Modern economic development in historical perspective
12.45 Stating from XVIII Century, industrialization dug a gap in human
history. What exactly was its meaning? What the causes and the consequences? Why do we refer to it as a complex phenomenon? 11.15- Capitalism and the others
12.45 Market economy is a quite recent way for organizing production and
exchange of goods. How did economies run before capitalism? What are the reasons which explain the success of market economy? R. Heilbroner, Twenty-First Century Capitalism, London: UCL Press 1992, pp. 6-21 [you can read this after the lesson] 11.15- Minimal State / Maximum State
12.45 Quite paradoxical y, the development of market economy went
alongside an intensification of the intervention of State over economy. How did the State changed during the history? How did State differ in market and in planned economies? 11.15- Market and natural environment (part 1)
12.45 Modern economic development is based on environment control and
new forms of natural resources exploitation. The case of industrialization in the United States (ca. 1860-1950) underscores the relationship between resources and models of growth. Does resources endorsement determine development possibilities? Which elements do define different models of exploitation? D.S. Landes, The Wealth and Poverty of Nations, London: Abacus 1998, 3-16 R. Cameron, A concise economic history of the world, New York: Oxford University Press 1989, pp. 226-229 11.15- Group activity (graded)
12.00 Is the research of profits always harmful for the environment? Find
pros and cons to this statement in the news. 12.00- Market and natural resources (part 2)
11.15- Market and political freedom (part 1)
12.45 Free market not always meant also political freedom. Does
democracy enhance or hamper modern economic development? Does politics interfere with or complete market mechanism? The lesson will consider the case of Germany (ca. 1840-1940) and China (1950-2000).
T. Kemp, Industrialization in Nineteenth-century Europe, London: Longman 1970, pp. XYZ A. Sen, Development as Freedom, New York: Anchor Books, 1999, pp. 146-159 11.15- Group activity (graded)
12.00 Does democratic participation slow economic decision and
development? Find pros and cons to this statement in the news. 12.00- Market and political freedom (part 2)
11.15- Module written exam / Final remarks
(not counted 12.45 Remember to sign up online for the exam trough My.LIUC by 17th for attend.) Students attending classes (minimum 5 classes on 7) Final exam is based on the
readings indicated in this syllabus and on the notes taken by the students during the
module. The instructor could indicate suggested readings for the students who would
require it. A copy of the readings is available at the Library.
All other students not-attending students could take a written exam on the book: K.G.
Persson, An Economic History of Europe, Cambridge: CUP 2010. Chapters 1, 2, 8, 9 and
11 are not required for the exam.
Test (0-25 pts) + Group activity (0-10 pts). Module III accounts for 30% on the final grade.
Not attending students: written test (0-30 pts).
My Group (number/name):______________________________________________
Speaker: ______________________________________________


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