The course will provide an opportunity to better understand how economic theories have addressed major economic issues, particularly growth and development, technology and innovation, unemployment, and the role of the state in the economy. The main aim is to introduce students to a comparative approach in the study of the major theories in the history of economic thought. The period covered spans nearly two centuries, but with a more specific focus on the last hundred years, in an effort to demonstrate that economics underwent a process of significant change before becoming what it is today. In this process of change, economics has acquired new perspectives and methods of inquiry, but has also lost along the way certain insights and approaches to problems whose potential utility can still be appreciated. To highlight this concept, the course will frequently compare today’s mainstream economics —itself viewed as subject to a process of change and criticism—with theories of the past. The course will follow a chronological order, beginning with the French and English authors of the 18th century who, alongside the spread of capitalism, sought to understand the main characteristics and long-term trends of the market economy. Turgot, Smith, and Ricardo fought for free trade, against the protectionist views of the Ancien Régime. We will then move on to Marx and the question of power relations in the economy, to Political Economy, and to Mill’s philosophical radicalism. The economics of Marshall and Walras will provide the basis for a comparison between general and partial equilibrium theories and their methodological foundations at the dawn of the marginalist revolution. The section of the course on Schumpeter will present a conceptualization of the dynamics of capitalism, innovation, growth, and entrepreneurship that has had a lasting influence on economics. The final section will focus on Keynes, who did not believe in the self-regulating properties of the economy. His approach is based on the awareness that the most crucial decisions in economics are made under conditions of uncertainty. In contrast to Keynes, we will also examine various visions of liberalism, including Hayek, the Austrian School , and ordoliberalism, which shaped the establishment of the European Monetary Union.

Knowledge and understanding: The course will offer a comparative approach to the history of economic thought, showing that economics as it exists today is a relatively recent acquisition. Covering almost two centuries, but with a focus on the last one hundred years, the course will enable the students to compare different economic theories, both from the point of view of their inner logic and explanatory power as well as for their applications to policy. Applying knowledge and understanding Students will be able to: i) contextualize economic theories, examining the relationship that exists between the emergence of a new theory or paradigm and the economic issues of the time and place in which the new approach is developed ii) compare economic theories, viewed as alternative explanations of economic phenomena as well as intellectual toolkits that can shape economic choices Making judgements: In the examination and comparison of different theories, students are expected to judge their logical coherence and evaluate the empirical conditions that make for their application to individual or social choice. They are also encouraged to evaluate how different approaches to economic analysis give more emphasis to certain economic phenomena (e.g. growth, distribution, business cycle, etc.) while implicitly treating other phenomena as less relevant. Communications skills As the language and concepts of economics evolved through history, students are expected to be able to explain each theory in its own terms, to convey the meaning of a new concept when it is introduced and to explain how the same concept evolved through history. Learning skills We expect students to acquire a new and more critical perspective on economics, based on the idea that economics as it exists today is not just the outcome of a cumulative scientific process but also the result of choices that were made as to what is relevant and what is not from the point of view of professional economists.

1. Introduction; 2. Classical Political Economy 3. Marx 4. From Classical Economics to Marginalism 5. Walras and Pareto on General Equilibrium Theory and the Role of Psychology in Economics 6. Partial Equilibrium Theory and Industrial Analysis in Marshall 7. Schumpeter on Entrepreneurship, Economic Development, and the Future of Capitalism 8. Keynes’s Theory of Employment, Interest, and Money 9. Macroeconomics after Keynes 10. Liberalism in the 20th Century 11. Current Trends in Economic Thought

Roncaglia, Alessandro. A Brief History of Economic Thought, Cambridge University Press, 2017 The slides for the course lectures are available on the My.luiss platform. Any additional readings will be announced and made available during the course

Each class session consists of a presentation of the topic to be discussed with the class. Active student participation is required . In some cases, students will be required to read the assigned readings in advance

Mandatory written exam. Student assessment will be based on a 90-minute closed-book written exam consisting of six open-ended questions. In addition, after six weeks of classes, there will be a midterm exam. This will consist of three open-ended questions, to be answered within 45 minutes. The material covered in weeks 1 through 6 will be included. Students who take and pass both the midterm and final exams will have their final grade calculated as an equal combination of the two (50% each). Students who miss, do not pass, or refuse to take the midterm exam will take only the final exam. The final exam will last 90 minutes and will consist of two parts. Part 1 will cover weeks 1 through 6, and Part 2 will cover weeks 7 through 12. Review questions will also be covered during class.

Interest in the subject, assessed by the instructor through an interview at the end of the course.