Course description:

This course aims to introduce the concept of institutional economics and its application in public policy issues. The course consists of three main studies, namely development of theory, basic assumptions and methodology. In this case, the study will begin with the history of classical, neoclassical economic thought, criticism of classical and neo-classical economics and the emergence and development of institutional economics. The second study is institutional theories. In the study of institutional theories, non-economic variables are introduced into the analysis and broaden the basic assumptions of the rationality of economic agents in neoclassical economic theory into limited rationality. The next material is the application of institutional theory in explaining various economic policy problems. In this case, the relationship between institutions and the economy will also be analyzed through classical literature and its application in public policy.