In this course, you will explore key concepts, theories, and methods in socioeconomics to understand the deep interconnections between human behaviour, institutional structures, and planetary limits.

Part I: Markets, Institutions, and Innovation 

In the first part of the course, we examine the main economic actors and the governance of their interactions. Moving beyond traditional models, we view markets as complex systems of social institutions—established and prevalent social rules that structure interactions. You will learn how these institutions are sustained not just by rational choice, but by being deeply embedded in shared habits of thought and behaviour. We will examine how institutional structures both constrain and enable economic action, ultimately shaping the identities and preferences of agents. This includes analysing how deeply ingrained cultural and economic identities, such as the link between fossil-fuel reliance and "petro-masculinity", can create powerful socio-cultural resistance to necessary economic and environmental transitions.

Furthermore, we will investigate how novelty emerges and the conditions conducive to innovation. Challenging the traditional view that the public sector's role is merely to fix "market failures," we will explore how true innovation and technological revolution often require mission-oriented, risk-taking policies aimed at actively shaping and creating new markets.

Part II: Measuring Progress and Ecological Macroeconomics

In the second part of the course, we redefine what it means for a society to succeed. You will discover new ways to measure economic performance, social progress, and human wellbeing, moving past the severe limitations of Gross Domestic Product (GDP). We will evaluate multidimensional approaches to well-being that account for relational goods, freedom, equality, and justice, alongside applied alternative metrics like the Genuine Progress Indicator (GPI) and the Sustainable Prosperity Index (SPI).

Finally, you will grapple with the biophysical limits of endless economic growth, analysing how economies act as open systems embedded within a closed planetary biosphere. We will discuss severe environmental boundaries and thresholds, including climate change and abrupt tipping points like the potential collapse of the Atlantic Meridional Overturning Circulation (AMOC). To address these challenges, you will study a specific ecological macroeconomic model, the LowGrow Stock-Flow Consistent (SFC) model, that accounts for ecological and social sustainability. You will even become a macroeconomic modeler yourself, simulating "Sustainable Prosperity" scenarios that balance full employment, poverty reduction, lowered inequality, and environmental protection without relying on perpetual economic growth.

Program Fit: This course complements other courses in the introductory and main program phases of the BBE program ('Contemporary Challenges in Business and Economics', 'Foundations in Micro- and Macroeconomics', 'History of Economics and the Economy').

By integrating insights from institutional economics, evolutionary innovation theory, behavioural sciences and ecological macroeconomic modelling, it offers a comprehensive account of the economy and its manifold institutions, informed by diverse social scientific disciplines and approaches.

After completing this course, you will be able to:

1. Critically analyse the role of social institutions in the economy, understanding them as "systems of established and prevalent social rules" that are deeply embedded in shared "habits of thought and behaviour". You will evaluate how these institutional structures both constrain and enable economic action, mold the identities of economic actors, and ultimately dictate how the public sector can actively create and shape new markets, rather than merely fixing market failures.
2. Evaluate multiple dimensions of human well-being and social progress, articulating the severe limitations of using Gross Domestic Product (GDP) as a proxy for societal success. You will apply the capability approach, which focuses on the "capabilities of people to do things, and the freedom to live lives, that they have reason to value", and assess how multidimensional metrics like the Genuine Progress Indicator (GPI) and Sustainable Prosperity Index (SPI) provide a more accurate and comprehensive measure of human flourishing.
3. Apply ecological macroeconomic modelling to address biophysical limits and socioeconomic inequality. By engaging with frameworks like the LowGrow Stock-Flow Consistent (SFC) model, you will simulate and analyse alternative economic scenarios that achieve sustainable prosperity, such as maintaining full employment, reducing poverty, and protecting the environment, without relying on the traditional paradigm of endless economic growth.

To get the most out of this course, regular attendance and active participation are essential. The formal attendance requirement for this course is a minimum of 70% of all scheduled sessions. Attendance will be monitored via sign-in sheets, which may be circulated more than once during a single class. Please make sure to sign these sheets so your presence is accurately recorded. Consistent attendance and engagement are crucial components of mastering the material and achieving a strong final grade.

This course thrives on active participation and collaborative learning. Prof. Sigrid Stagl, Mr Jan Stalzer, MSc and Ms Zuzanna Jaroch will guide you through a carefully curated selection of readings, in-class and online lectures, and hands-on coaching sessions. To get the most out of the course, it is essential that you attend as many classes as possible, complete the mandatory weekly readings, and engage with the supplementary video materials.

The course is divided into two distinct phases:

Part I: Foundations of Socioeconomics: Led by Prof. Sigrid Stagl, the first half of the course provides a deep dive into societal institutions, conditions for innovation, multidimensional well-being, and the biophysical limits of eternal economic growth. To help you consolidate this knowledge, short quizzes will be held during sessions 2, 3, 4, and 5 based on the provided learning materials.

Part II: Ecological Macroeconomic Modeling & Managing Without Growth: The second half shifts focus to applied ecological macroeconomics. You will be split into groups, and MSc. Jan Stalzer will coach each group on using STELLA, a dynamic systems modeling tool (available in the WU computer labs). Concurrently, we will study Peter A. Victor’s book, Managing Without Growth. While Prof. Stagl will host a Q&A sessions to prepare you for the exam, you are expected to independently read and critically reflect upon the book's contents during this phase of the course.

For this VUE course your final grade is determined by a combination of continuous assessment components. The maximum total score is 100 points. Therefore, each possible mark represents one percentage point in the final grading scheme (40 + 35 + 20 + 5 = 100 points).

Quizzes (40 points total): At the beginning of classes 2, 3, 4, and 5, there will be a short (15-minute), two-question quiz based on the previous week's lecture and readings. Each quiz is worth a maximum of 10 points.

• Dates: March 19, March 26, April 09, and Apr 16

Note: Quizzes take place exactly at the beginning of the session (10:00 am) and are paper-and-pencil based. You must be physically present and on time to receive these marks

Group Work – Systems Modelling (35 points): Using the dynamic systems modeling software STELLA, your group will develop an original model on a topic of your choice, inspired by the Victor/Jackson macroeconomic models. You must upload your model code along with a 5-minute video presenting your work.

• Due: June 27, 2025, at 23:59

Final Exam (20 points): A written exam testing your comprehension of the concepts in Peter A. Victor’s book, Managing Without Growth: Slower by Design, not Disaster (2019).

• Date: June 23, 2026, from 12:00-14:00

Reading Journal (5 points): Throughout the course, maintain a journal documenting your active reading of the materials. Use this space to record your thoughts, make connections to existing knowledge, ask critical questions, and formulate critiques. You will upload the file containing your journal at the end of the term.

• Due: June 22, 2025, at 23:59

Final Grading Scale:

Excellent (Sehr gut): > 90%

Good (Gut): > 80%

Satisfactory (Befriedigend): > 70%

Sufficient (Genügend): >= 60%

Fail (Nicht genügend): < 60%

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.