2 pages

University of Massachusetts Department of Economics

Course # and Course Title: ECON372; Comparative Economic Systems Handout1 for WK1: Introduction: Course Overview: Discussion based on the outlines in the syllabus

• Course Requirement: Weekly discussion Qs to submit by due dates and 2 Research Papers to write and submit by due date

• Grading Criteria: 50% for wkly discussion and 25% for each research paper • Discussion on Writing requirements and Writing format: To b posted in Canvas • Resources to be provided: Provided the list in the Syllabus and additional resources to be

posted in Canvas on weekly basis. • Teaching format: Face to Face plus blended pedagogy on BB

Topics to Cover: 1. Why study comparative economics systems (CES)? Is it static or evolutionary with a

state of dynamic transformation? What is economy as opposed to the concept of economics?

2. Historical perspectives of introducing alternative economic systems

• What happened in second half of 19th century since the publication of the communist manifesto of Marx and Engels in 1848?

• What happened in the European political economy since 1917 until 1990? • The transitional process of transforming socialism towards market socialism

since 1990.

3. Theoretical concepts of Capitalism, Socialism, Communism and other related schools of economic systems

The criteria to classify various countries into different economic systems: • Allocation systems • Ownership Pattern • Economics Planning • The systems of incentives • Distribution systems of income • Political systems with ideological differences including religion

The criteria to evaluate economies based on performance:

• Real per capita income = Real GDP/Population • The growth rate of real GDP = (Yt-Yt-1)/Yt-1 = ∆Y/Y • Composition of economic sectors: Consumption, Investment, Govt, exp, trade • Efficiency criteria: Static(Pareto optimality) • Efficiency criteria: Dynamic(maximization of allocation of resources in the LR) • Macroeconomic stability • Provision of basic economic security to the citizens • Efficiency and equity to balance • Degree of freedom enjoyed by the citizens to choose

4. Measuring the economic performance in terms of production and distribution

• Major economic, political and social indicators • Quantity versus quality • Overall income distribution with other non-economic factors to measure