Institutional Analysis: Concepts and Applications POLS Y673/ECON E724/SPEA P710 TR 1:00–2:15 p.m. Ostrom Workshop, 513 N. Park Ave., Tocqueville Room, 1st Floor Prof. Lee J. Alston ljalston@indiana.edu Office Hours: 2:30–3:30 TR and by appt. Website (812) 855–3151 Prof. Federica Carugati Office Hours: 1.30-3.00 M and by appt. mfcaruga@iu.edu 513 N. Park Ave, Room 205 Website COURSE DESCRIPTION The basis of institutional analysis is that formal institutions (e.g., laws) and informal institutions (e.g. norms) are important determinants of individual and group behavior. Behavior, in turn, affects socio-economic development. In the first part of the course, our initial focus is to take institutions as exogenous and understand how institutions lead to different socio-economic paths of development. After understanding the grand forces at play in shaping development paths, we will explore at a more micro level the outcomes of institutions, e.g. the rights that individuals and groups have to resources (property rights); and the forms of organization of production and exchange (markets and contracts). In Part II of the course, we explore the determinants of formal institutions (interest groups, legislative, executive and judicial branches, and the bureaucracy), taking as fixed the basic constitutional rules and the current realization of economic performance. In part III, we analyze the circumstances under which norms and beliefs can change and how those changes can lead to transitions to different economic and political trajectories (beliefs, leadership, constitutions). Throughout the course, we use case studies as well as econometric evidence to help students engage in applied work in institutional analysis. REQUIREMENTS This is a writing-heavy and participation-heavy course. Students are required to produce a 1-page precis to be submitted on Wednesdays no later than 5pm. The precis should summarize the main arguments in the weekly readings, and formulate observations and questions. An excellent precis seeks to relate the readings to each other and with material covered in the previous weeks. In addition, each week on Thursday a student will be the residual claimant of the readings. She or he will be the first to reply to questions about the readings from others in the class. Finally, a good portion of your grade in this course will depend on the final research paper. Each student will present an outline of the paper in class on week 10 and receive feedback from fellow students and instructors. Students will submit an electronic copy of their complete outline with bibliography to the instructors no later than October 23 at 5pm. We will repeat the same exercise on weeks 15 and 16 for the first draft of the paper, which is due no later than November 27 at noon. This time, however, students will not present in class. Instead, the papers will be made available to students on CANVAS ahead of time. It will be your responsibility to read the papers 1