Oslo Summer School in Comparative Social Science Studies 2009


Topics in Economic Analysis of Institutions

Lecturer: Assistant Professor Nicola Gennaioli, CREI,
Universitat Pompeu Fabra, Barcelona, Spain

Main discipline: Economics

Dates: 27 - 31 July 2009
Course Credits: 10 pts (ECTS)
Limitation: 30 participants


Objectives
This course reviews key contributions in the economic analysis of institutions, with a specific emphasis on positive as well as normative theories of financial markets regulation. The course will first outline theoretically the conditions under which institutions should matter for economic efficiency. We will then revisit empirical evidence on the economic role of political and legal institutions. The course continues by studying political and legal theories of economic institutions, focusing on financial market regulation. The final part of the course is devoted to study the role of domestic institutions in shaping the working of global capital markets.

 

Background Readings:

It is expected that students obtain and have good knowledge of the two books listed as background readings in advance of this course.

 

LECTURE OUTLINE:

Day 1: Theoretical Foundations of Institutional Analysis

a. The Coase theorem and the irrelevance of institutions
b. Irrelevance of corporate law (and disclosure laws)
c. Contracting frictions and the relevance of institutions

References:

 

Day 2: Empirical Evidence on the Economic Role of Institutions

a. The role of political institutions
b. The role of legal institutions

References:

 

Day 3: Political Theories of Financial Regulation

a. Lobbying by corporate insiders
b. Lobbying by incumbent entrepreneurs
c. Political Feasibility of Financial Reform

References:

 

Day 4: Legal Theories of Financial Regulation

a. Common vs. Civil Law: static analysis
b. Legal Evolution in Common Law systems
c. Enforcer incentives and financial regulation

References:

 

Day 5: International Capital Markets

References:

 

The Lecturer
Nicola Gennaioli is an assistant professor of economics at the Centre de Recerca en Economic Internacional (CREi) at the Universitat Pompeu Fabra (UPF) in Barcelona. He earned a PhD in economics at Harvard University in 2004 and held a position as assistant professor at the Institute of International Economic Studies (IIES) at Stockholm University until 2007. He works on the economics of institutions and has published papers in several international journals including the Journal of Political Economy, the Quarterly Journal of Economics, the Journal of Economic Growth, and the Journal of Legal Studies.


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