74681 - POLITICAL ECONOMICS

Learning outcomes

At the end of the class student has knowledge on using the concepts and tools of the new political economy to analyze current topics in this field. The focus is on the formation of macroeconomic policies from a positive point of view. Student is able to analyze issues such as: - the interaction between politics and economics in shaping macroeconomic policies in modern democracies; - the role of political institutions in the process of economic growth and development; - the effects of elections and changes of policymakers on macroeconomic policy.

Course contents

Note (particularly for Erasmus students): By the beginning of classes, all students are expected to have successfully completed BOTH a graduate micro-econometrics course AND a graduate microeconomics course.
Taking the course WITHOUT having taken these pre-requisite classes is extremely discouraged.

Note that this syllabus may be subject to changes; thus, please make sure you check the most updated version of the syllabus.

This version was last changed on February 6, 2025.

Topic 1: Introduction
What is happening in recent U.S. elections? Partisan segregation and its recent trends

Topic 2: Two fundamental political economy models
The median voter theorem, the Meltzer-Richard’s model

Topic 3: Identity formation
What shapes political identity?

Topic 4: Voter turnout
Causes and consequences of voter participation

Topic 5: Immigration
Immigration and its effects on the political debate

Topic 6: Social media vs. social capital

Readings/Bibliography

The course has no single textbook. Readings and teaching materials (e.g., slides, notes, exercises) for each class will be published on the university platform VIRTUALE: https://virtuale.unibo.it/

Below are some of the readings that I will cover, fully or partly, during classes. This list is partial and will likely be updated before and/or during the course.

 

Topic 1: Introduction

Required readings:

• Brown, Jacob B., and Ryan D. Enos, “The measurement of partisan sorting for 180 million voters.” Nature Human Behaviour, 2021, 5: 998-1008.
• Brown, Jacob, Enrico Cantoni, Ryan Enos, Vincent Pons, and Emilie Sartre, “Causes and Extent of Increasing Partisan Segregation in the U.S. – Eidence from Migration Patterns of 212 Million Voters.” National Bureau of Economic Research Working Paper (33422), 2025.
• Lowe, Matthew, “Types of Contact: A Field Experiment on Collaborative and Adversarial Caste Integration.” American Economic Review, 2021, 111 (6): 1807-1844.

Recommended readings:

• Acemoglu, Daron, and Pascual Restrepo, “Robots and Jobs: Evidence from US Labor Markets.” Journal of Political Economy, 2020, 128 (61): 2019-2452.
• Autor, David, David Dorn, Gordon Hanson, and Kaveh Majlesi, “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure.” American Economic Review, 2020, 110 (10): 3139-3183.
• Autor, David, David Dorn, and Gordon Hanson, “The China Syndrome: Local Labor Market Effects of Import Competition in the United States.” American Economic Review, 2013, 103 (6), 2121-2168.

• Fetzer, Thiemo, “Did Austerity Cause Brexit?” American Economic Review, 2019, 109 (1): 3849-3886.
• Leonhardt, David, “Ours Was the Shining Future.” 2023. London (UK): Quercus Editions.

 

Topic 2: Two fundamental political economy models

Required readings:

• Instructor’s notes

• Di Tella, Rafael, Randy Kotti, Caroline Le Pennec, and Vincent Pons, “Keep your Enemies Closer: Strategic Platform Adjustments during U.S. and French Elections.” National Bureau of Economic Research Working Paper (31503), 2023.

Recommended readings:

• Acemoglu, Daron, Suresh Naidu, Pascual Restrepo, and James A. Robinson, “Chapter 21 – Democracy, Redistribution, and Inequality” in Handbook of Income Distribution, edited by Anthony B. Atkinson and François Bourguignon, Volume 2B, 2015, Elsevier, 1885-1966.

 

Topic 3: Identity formation

Required readings:

• Brown, Jacob, Enrico Cantoni, Sahil Chinoy, Martin Koenen, and Vincent Pons, “The Effect of Childhood Environment on Political Behavior: Evidence from Young U.S. Movers, 1992—2021.” National Bureau of Economic Research Working Paper (31759), 2023.
• Ghitza, Yair, Andrew Gelman, and Jonathan Auerbach, “The Great Society, Reagan’s Revolution, and Generations of Presidential Voting.” American Journal of Political Science, 2013, 67 (3): 520-537.

 

Topic 4: Voter turnout

Required readings:

• Cantoni, Enrico, “A Precinct Too Far: Turnout and Voting Costs.” American Economic Journal: Applied Economics, 2020, 12 (1), 61-85.
• Cantoni, Enrico, and Vincent Pons, “Does Context Outweigh Individual Characteristics in Driving Voting Behavior? Evidence from Relocations within the U.S.” American Economic Review, 2022, 112 (4): 1226-1272.
• Cantoni, Enrico, and Vincent Pons, “Strict ID Laws Don’t Stop Voters: Evidence from a Nationwide Panel, 2008–2018.” Quarterly Journal of Economics, 2021, 136 (4): 2615-2660.
• Cantoni, Enrico, Vincent Pons, and Jérôme Schäfer, “Voting Rules, Turnout, and Economic Policies.” Annual Review of Economics, 2025, forthcoming.

Recommended readings:

• Fraga, Bernard, “The Turnout Gap: Race, Ethnicity, and Political Inequality in a Diversifying America.” Cambridge University Press. Kindle Edition.
• Fujiwara, Thomas, “Voting Technology, Political Responsiveness, and Infant Health: Evidence from Brazil.” Econometrica, 2015, 83 (2): 423-464.

 

Topic 5: Immigration

Required readings:

• Alesina, Alberto, and Marco Tabellini, “The Political Effects of Immigration: Culture or Economics?” Journal of Economic Literature, 2024, 62 (1), 5-46.
• Barone, Guglielmo, Alessio d’Ignazio, Guido de Blasio, and Paolo Naticchioni, “Mr. Rossi, Mr. Hu and politics. The role of immigration in shaping natives’ voting behavior.” Journal of Public Economics, 2016, 136, 1-13.
• Mayda, Anna Maria, Giovanni Peri, and Walter Steingress, “The Political Impact of Immigration: Evidence from the United States.” American Economic Journal: Applied Economics, 2022, 13 (1): 358-389.

 

Topic 6: Social media vs. social capital

Required readings:

• Allcott, Hunt, Luca Braghieri, Sarah Eichmeyer, and Matthew Gentzkow, “The Welfare Effects of Social Media.” American Economic Review, 2020 110 (3): 629-676.
• Levy, Ro’ee, “Social Media, News Consumption, and Polarization: Evidence from a Field Experiment.” American Economic Review, 2021, 111 (3): 831-870.

Recommended readings:

• Chetty, R., Jackson, M.O., Kuchler, T. et al. “Social capital I: measurement and associations with economic mobility.” Nature, 2022, 608: 108-121.
• Chetty, R., Jackson, M.O., Kuchler, T. et al. “Social capital II: determinants of economic connectedness.” Nature, 2022, 608: 122-134.
• DellaVigna, Stefano, and Ethan Kaplan, “The Fox News Effect: Media Bias and Voting.” Quarterly Journal of Economics, 2007, 122 (3), 1187-1234.
• Gentzkow, Matthew, “Television and Voter Turnout.” Quarterly Journal of Eonomics, 2006, 121 (3), 931-972.
• Haidt, Jonathan, “The Anxious Generation: How the Great Rewiring of Childhood Is Causing an Epidemic of Mental Illness.” Penguin Books Ltd. Kindle Edition.
• Olken, Benjamin, “Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages.” American Economic Journal: Applied Economics, 2008, 1 (4), 1-33.
• Putnam, Robert, “Bowling Alone: The Collapse and Revival of American Community.” 2000. New York: NY (USA): Simon & Schuster.
• Putnam, Robert, Robert Leonardi, and Raffaella Nanetti, “Making Democracy Work: Civic Traditions in Modern Italy.” 1993. Princeton, NJ (USA): Princeton University Press.

Teaching methods

Traditional lectures led by the course lecturer.

Comportment:

My goal is that students learn something by attending class. In this spirit, I ask you to put away your phones and to use portable computers (including tablets) only to take notes. Please, do not do anything else with your PC during class. If, for whatever reason, you cannot stay away from your phone for less than two hours, please avoid coming to class.

Assessment methods

Final oral exam of about 15 minutes per candidate. Each student will be tested both on the papers covered in class (not exclusively on the part discussed in class) and on a paper randomly assigned to them (a different paper for each student) towards the end of the course.

The grading system is on a 0-30 scale. The maximum possible score is 30 cum laude, in case all answers are correct, complete, and formally rigorous. If that is not the case, the following grading scheme applies:

<18 fail
18-23 sufficient
24-27 good
28-30 very good
30 cum laude: excellent

To take the exam, candidates are required to register via the University's electronic service (AlmaEsami).

Teaching tools

Slides, lecture notes, and readings will be available on the platform VIRTUALE: https://virtuale.unibo.it/

Office hours

See the website of Enrico Cantoni