PP440 One Unit
Micro and Macro Economics (for Public Policy)
This information is for the 2025/26 session.
Course Convenor
Prof Luis Garicano
Eran Yashiv
Availability
This course is compulsory on the Double Master of Public Administration (LSE-Columbia), Double Master of Public Administration (LSE-University of Toronto), MPA Dual Degree (LSE and Hertie), MPA Dual Degree (LSE and NUS), MPA Dual Degree (LSE and Tokyo), MPA in Data Science for Public Policy and Master of Public Administration. This course is available on the MSc in Political Science (Political Science and Political Economy). This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
Compulsory course for MPA Year 1 students, MPA in Data Science for Public Policy Year 1 students, and MPA Double Degree Year 1 students. A small number of spaces may be available for outside option students who should submit a statement in support of their request.
Deadline for application: 12 noon on the Friday before the start of Autumn Term. Decisions will be sent as soon as possible after the request deadline. Students for whom this course is compulsory should select the course by 12 noon on the Friday before the start of Autumn Term.
For queries contact: mpa@lse.ac.uk
Course content
This course is an introductory graduate course providing an economics background suitable for high-level public policy-making. The emphasis is on acquiring sound models and methods suitable for appraising policy-making issues in a wide variety of contexts. The first term covers microeconomics and the second term covers macroeconomics.
Autumn Term (Microeconomics): competitive markets and economic efficiency; consumer optimisation and the demand for goods; firm optimisation and the supply of goods; market power; externalities in consumption and production; optimal provision of public goods; and asymmetric information
Winter Term (Macroeconomics): understanding macroeconomic data; long-run economic growth; business cycles; aggregate demand; money, inflation and monetary policy; stabilization policy; fiscal policy and government debt; the labour market and unemployment; exchange rates and international economic policy; the financial system and the macroeconomy.
Teaching
1.5 hours of seminars and 2 hours of lectures in the Spring Term.
20 hours of lectures and 13.5 hours of seminars in the Winter Term.
20 hours of lectures and 13.5 hours of seminars in the Autumn Term.
This course has a reading week in Week 6 of Autumn and Winter Term.
Formative assessment
Students will complete weekly problem sets. Some of these will be marked to provide indicative assessment.
Indicative reading
A full reading list will be distributed at the beginning of the course.
Assessment
Exam (70%), duration: 180 Minutes, reading time: 15 minutes in the Spring exam period
Continuous assessment (10%)
Memo (10%)
Memo (10%)
One assessed policy memo will be completed in each term of the course.
Key facts
Department: School of Public Policy
Course Study Period: Autumn, Winter and Spring Term
Unit value: One unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 91
Average class size 2024/25: 13
Controlled access 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.