Economic Controversies

Recommended Prerequisites

A good knowledge of economic theory (micro and macro) is recommended. Competence of reading in English is indispensable.

Teaching Methods

1. Presentation of each topic by the teacher giving relevance to the identification of the problems in study and of the positions under discussion (short opinion texts, selected from the press or the Internet, and videos will be used whenever possible to enliven the introduction of the subject)

2. Analysis in small groups and class discussion of scientific papers with a view to identifying their arguments and assumptions

3. Inter-group discussion of the positions studied (each group will assume the defense of one of them; an adequate knowledge of the other positions is obviously required)

Learning Outcomes

The purpose of this unit is to show the plural and controversial nature of economics as a science and make students aware of the importance of critical thinking. By looking into some current and past controversies in theory, policy and method students learn the relevance of analysis and critical discussion.

By the end, students are expected to:

- Be able to reflect on the nature of economic knowledge, the theories they learn and their application to real-world problems;

- Become aware of the relevance and non-neutral nature of economists’ choices on method;

- Be able to identify the competing traits of studied economic analyses and critically compare them;

- Understand what is at stake in an economic debate or controversy;

- Be able to analyse an economic text and identify its arguments;

- Be able to develop logical and coherent economic arguments and sustain them, both orally and in writing;

- Be able to study independently and work in a group.

Work Placement(s)

No

Syllabus

1. Controversy and pluralism in economics. Schools of economic thought. Argumentation, rhetoric and critical thinking. The historical and methodological perspective.

2. The nature of economic knowledge and the role of the economist: economic expertise and the controversy over values in economics.

3. Value, prices and economic calculation: (i) theories of value: labor-value and value-utility; social value; (ii) the controversy over the calculation of the social and environmental impacts of investment megaprojects.

4. State and markets: recent controversies: (i) Keynes/Hayek, Polanyi and neoliberalism; (ii) costs of inequality vs. costs of redistribution policies; (iii) minimum wages and unemployment; (iv) public school and privatization of education.

5. Methodological controversies in economics: (i) theory and history: the “battle of methods” and the problem of historical specificity; (ii) formalism.

6. What caused the "Great Recession" and why economists did not predict it?

Head Lecturer(s)

Vítor Manuel Leite Neves

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

Para cada tema será fornecida uma lista de textos (obrigatórios e complementares), a disponibilizar no nónio (via inforestudante) / for each topic a reading list will be provided.