Master in Economics and Business Administration Module Fundamentals of Economics and Business I Subject Microeconomics Lecturer Xavier Vilà Year 2014-2015 Subject description Microeconomics consists of the analysis of the behavior of economic agents and the implications of their interactions. The course explores the basic topics of consumers and firms behavior and optimization, market equilibrium, and choice under uncertainty. Course contents Introduction 1. Consumer Theory 1.1. Preferences and utility. 1.2. Budget constraint. 1.3. Utility maximization. 1.4. Properties of marshallian demand functions. Income and substitution effects. 2. Theory of the Firm 2.1. Technology and production function. 2.2. Productivity and returns to scale. 2.3. Cost minimization: cost and conditional input demand functions. 2.4. Short and long run families of cost functions. 2.5. Profit maximization and output supply. 3. Partial Equilibrium 3.1. Market supply and demand functions. Elasticities. 3.2. Market equilibrium. 3.3. Consumer and producer surplus. 3.4. Market efficiency. 4. Decision Making under Uncertainty. 4.1. Lotteries. 4.2. Expected utility theory: the von Neumann-Morgenstern utility function. 4.3. Risk aversion. MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
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Master in Economics andBusiness Administration
Module Fundamentals of Economics and Business I
Subject Microeconomics
Lecturer Xavier Vilà
Year 2014-2015
Subject description
Microeconomics consists of the analysis of the behavior of economic agents and theimplications of their interactions.The course explores the basic topics of consumers and firms behavior and optimization,market equilibrium, and choice under uncertainty.
Course contents
Introduction
1. Consumer Theory1.1. Preferences and utility.1.2. Budget constraint. 1.3. Utility maximization. 1.4. Properties of marshallian demand functions. Income and substitution effects.
2. Theory of the Firm2.1. Technology and production function. 2.2. Productivity and returns to scale. 2.3. Cost minimization: cost and conditional input demand functions. 2.4. Short and long run families of cost functions. 2.5. Profit maximization and output supply.
3. Partial Equilibrium3.1. Market supply and demand functions. Elasticities.3.2. Market equilibrium.3.3. Consumer and producer surplus.3.4. Market efficiency.
4. Decision Making under Uncertainty.4.1. Lotteries. 4.2. Expected utility theory: the von Neumann-Morgenstern utility function.4.3. Risk aversion.
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Master in Economics andBusiness Administration
Assessment policy
Continuing evaluation (assignments, essays, in-class presentations and participation): 35% of the final grade
Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Fundamentals of Economics and Business I Subject Public Economics Lecturers Francesc Trillas Year 2014-2015
Subject description Learn the main principles and applications of welfare economics and political economy, including modern incentive theory in the public sector and related issues in behavioral economics. Course contents 1.Foundations: welfare economics and market failures. Inequality. Welfare theorems. Second Best. Coase theorem. Efficiency and equity trade-offs. 2. Collective decision making. Social choice and collective action. Cooperation and coordination games. Political economy and public choice. Incentives in the public sector. Political economy & institutional economics. 3. Behavioral economics, public choice and welfare economics. Systematic biases in individual behavior. Boundedly rational consumers, firms and policy-makers. 4. Applications: Governing Globalization, Complex Economic Systems, Cost-Benefit analysis and Mega-projects. Assessment policy - One final Exam (65%) - Exercises as self-evaluation. These will not be graded, but will be essential practice for the final exam. - Essays (35%). One essay per student on an application of the contents of the course (a precise guide will be distributed) References General -Congdon, W.J.; Kling, J.R. (2011), Policy and Choice: Public Finance through the Lens of Behavioral Economics, Brookings Institutions. -Cullis/Jones (2009), Public Finance and Public Choice, Oxford University Press. Third edition.
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-Gruber, J. (2007), Public Finance and Public Policy, Worth Publishers, Second Edition. -Hindriks/Myles (2006), Intermediate Public Economics, The MIT Press. -Silvestre, J. (2012), Public Economics. Efficiency and Equity in Public Policy, Edward Elgar. Specific Specific references will be distributed for every chapter. Contact information Name e-mail Department Office Phone Francesc Trillas [email protected] Economia Aplicada B3-78 93 581
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Fundamentals of Economics and Business I Subject Strategic Management I & II Lecturer Blanca Martins Year 2014-2015 Subject description
1. Overall description of the course and rationale The aim of the course is to introduce the student to the main concepts and thought processes in strategic management. Strategy will be studied as a general management task, developing strategic awareness and strategy skills within the strategic analysis, formulation and implementation stages of the strategic decision-making process. Strategy is about clear thinking rather than the blind use of concepts and techniques.
2. Learning objectives / outcomes Present and practice the body of knowledge and techniques related to strategic decision making so that the participant can effectively take part in its formulation and implementation process. Students will be encouraged to explore the limitations of the tools, theories and strategic frameworks. By the end of the course the student should be able to: - Summarize the importance of strategy, be critically aware of factors involved in strategy making, and determine what makes (and keeps) companies competitive, - Understand business strategy and the integrative nature of strategic management, - Think strategically, - Understand and apply strategic management key tools and analytical frameworks, - Determine strategy influence and impact, - Develop personal effectiveness, managing its own learning and providing learning opportunities for others.
3. Delivery Methodology
The course is designed to be challenging, interactive and to allow for frequent participation between the participants and the Lecturer.
The sessions will have a predominantly applied character with a high participatory content. Each week students are presented with issues, problems and cases to discuss in class and in syndicate groups with a view to attaining the learning outcomes. The delivery format will include a combination of lectures, individual and syndicate group tasks, case studies, discussions, role-plays, and videos. The course will be based on three main activities: (1) In-class lectures, (2) Case study analysis and presentations. (3) Preparation and presentation of a Strategic Plan.
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Course contents
1. Configuration Function of Strategy: The policy and strategy concepts. Contents of business strategy. Different levels of strategy and strategic decision. Strategic business unit (SBU). The strategy formulation process. Business model.
2. Strategic Analysis (I) (External): Analysis of the general macro-environment. Analysis of the industry and competitive environments. Intra-industry analysis. Concept and identification of strategic groups and market segments. Identification of key success factors.
3. Strategic Analysis (II) (Internal): Functional analysis and strategic profile of the firm. Value chain analysis. Internal analysis based on resources and capabilities of the firm.
4. Business Strategy (I): Nature and sources of competitive advantages. Analysis of cost and differentiation advantages. Generic competitive strategies.
5. Corporate Strategy (II): Vertical integration. Global strategy and the multinational corporation. Diversification. Corporate strategy implementation. M&A and Alliances.
Assessment policy
Continuing evaluation (assignments, quizzes, in-class presentations and participation): 35% of the final grade
Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade
Important: A (passing) grade of 50 or more out of 100 must be obtained for each of the sections described above to successfully pass the course.
• THOMPSON Jr., A.A., STRICKLAND III, A.J. and GAMBLE, J.E. (2009), Crafting and Executing Strategy: Text and Readings, 17th edition, McGraw-Hill: London.
Additional readings may be distributed in class or uploaded on the ‘xxx’ system. Contact information
Name e-mail Department Office Phone Blanca Martins @uab.cat Economia B3- 93 581
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module MODULE 2 Subject MACROECONOMICS Lecturers HECTOR SALA Year 2014-2015
Subject description This course aims to familiarize students with key analytical concepts and key analytical tools in macroeconomic analysis and related policies. The course addresses central macroeconomic questions that have arised in the period between the first oil price shock and the current Great Recession in which GDP the unemployment rate has systematically evolved above full-employment levels. Upon completion, students must be able: (i) to understand fundamental theoretical issues underlying the relationship of some critical macroeconomic variables such as GDP, inflation, unemployment, etc; (ii) to interpret the reasons for, and the effects of, demand and supply-side policies; (iii) to deal with appropriate data and elaborate brief country-specific reports characterizing the macroeconomic situation of any economy.
The course will consist on:
• Lectures • Reading (I): Press articles • Reading (II): Academic papers • Country reports to be handled to the instructor and presented in class
Extended course contents
1. Output
Supply side analysis / Demand side analysis / Income side analysis
2. Economic Growth and the Total Factor Productivity (TFP)
Production function / (Biased) Technological change / TFP and its determinants
3. Competitiveness
Unit Labour Costs (ULCs) / Real ULCs / Nominal and Real Effective Exchange Rate
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4. External Imbalances
Balance of Payments / Current Account Deficits / Capital Flows / Net Lending vs. Net Borrowing capacity.
5. Macroeconomic Analysis of “The Great Recession”
Perfect competition vs. imperfect competition in the product and labour markets
Assessment policy Continuing evaluation (assignments, essays, in-class presentations and participation): 35% of the final grade Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade References Specific academic papers and/or press articles will be supplied during the course. Useful databases for empirical exercises/essays and the country reports
• Eurostat: Several databases http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database
• OECD: Several databases
http://www.oecd-ilibrary.org/ • IMF: Several databases
http://www.elibrary.imf.org/ • European Comission: AMECO DATABASE
http://ec.europa.eu/economy_finance/db_indicators/ameco/index_en.htm • The World Bank: DOING BUSINESS DATABASE
http://www.doingbusiness.org/data.
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
You should also check also the National Statistics
Offices and Central Banks of each country.
Contact information Name e-mail Department Office Phone Hector Sala [email protected] Economia Aplicada B3 - 084 93 581 27 79
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Fundamentals of Economics and Business II Subject PUBLIC FINANCE Lecturers Miguel-Angel LOPEZ-GARCIA Year 2014-2015
Subject description
Public Finance, or equivalently Public Economics, focuses on the study of the effects of government actions on economic activity. It aims at predicting the effects of these actions and at providing guidance on the choice among different alternatives. By restricting attention on a relatively small number of topics, the objective of the course is to illustrate how economic analysis emerges as an extremely helpful instrument in the design and evaluation of public policy. Course contents
1. A framework for normative analysis 2. Commodity taxation 3. Income taxation 4. Tax evasion 5. Intertemporal efficiency 6. Social security Assessment policy Continuing evaluation (assignments, essays, in-class presentations and participation): 35% of the final grade Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade References
The basic reference for the course is J. Hindriks and G.D. Myles (2013), Intermediate Public Economics, MIT Press, second edition.
Further, more specialized references, are: A.B. Atkinson and J.E. Stiglitz (1980), Lectures on Public Economics, McGraw-Hill.
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A.J. Auerbach and M. Feldstein (eds) (1985,1987,2002.a,2002.b), Handbook of Public
Economics, Vols. 1-4, North Holland. A.J. Auerbach, R. Chetty, M. Feldstein and E. Saez (eds) (2013), Handbook of Public
Economics. Vol. 5, North Holland. B. Salanié (2003), The Economics of Taxation, MIT Press. R. Jha (2010), Modern Public Economics, Routledge, second edition. R.W. Tresch (2002), Public Finance. A Normative Approach, Aceademic Press, second
edition. Contact information Name e-mail Department Office Phone Miguel-Angel Lopez-Garcia
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Fundamentals of Economics and Business II Subject Introduction to Data Analysis Lecturer Maite Cabeza Gutés Year 2014-2015 Subject description The course main objective is to provide a solid foundation of statistics for the analysis of economic data. Some of the most popular methods for data analysis will be reviewed. Even if the focus of the course is on the application of these methods, mathematical details will be included to help to properly evaluate the tools presented. Course contents 1. Introduction 2. Key concepts for univariate data analysis 3. Key concepts for multivariate data analysis 4. Statistical methods for summarizing data 5. Estimation methods 6. Statistical inference Assessment policy Continuing evaluation (assignments and in-class participation): 35% of the final grade. Final evaluation (written exam): 65% of the final grade. There will be regular problem sets involving both theoretical aspects and applications of the tools presented. Problem sets have to be turned in at the beginning of the class on the day they are due. Late submissions will receive only partial credit or no credit at all. Selected references Larsen, R.J & Marx, M.L., An Introduction To Mathematical Statistics And Its Applications. Mittelhammer, R.C. Mathematical Statistics for Economics and Business Ramachandran, K.M & Tsokos, C.P, Mathematical Statistics with Applications. Some supplemental readings will be recommended for each specific unit. Software Stata Course web page http://pareto.uab.cat/mcabeza Contact information Name e-mail Department Office Phone
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Fundamentals of Economics and Business II Subject Econometrics Lecturer Maite Cabeza Gutés Year 2014-2015 Subject description The course covers basic tools of econometric analysis for the measurement and testing of economic relationships. Special emphasis is placed on the applications and limitations of regression models. Course contents 1. Introduction to econometric analysis 2. Regression models: estimation 3. Regression models: inference 4. Topics in the analysis of cross sectional data. 5. Topics in the analysis of time series data 6. Regression analysis to model categorical variables Assessment policy Continuing evaluation (assignments and in-class participation): 35% of the final grade. Final evaluation (written exam): 65% of the final grade. There will be regular problem sets involving both theoretical aspects and applications of the tools presented. Problem sets have to be turned in at the beginning of the class on the day they are due. Late submissions will receive only partial credit or no credit at all. Selected references Stock, J. & Watson, M., Introduction to Econometrics. Verbeek, M., A Guide to Modern Econometrics. Wooldridge, J.M., Introductory Econometrics. Some supplemental readings will be recommended for each specific unit. Software Stata Course web page http://pareto.uab.cat/mcabeza Contact information Name e-mail Department Office Phone
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Public Policies Subject Evaluation Methodologies for Public Policy Lecturers Roxana Gutiérrez-Romero Year 2014-2015
Subject description The objective of this course is to familiarize students with the growing field of impact evaluation in economics. The course presents the main methodologies used to quantify the causal effect of policy interventions on outcomes, including randomized evaluations, difference-in-differences, regression discontinuity designs and natural experiments. These methodologies are assessed critically focusing on their weaknesses and strengths as well as focusing on their application in Stata. The course also offers an overview of the key debates in the design and implementation of a wide range of policies, and their impact on tackling poverty, improving quality and access to education, regeneration of deprived areas, fostering employment, salaries, among others. Course contents Methodology
• Key challenges of estimating the causal impact of public policies • Randomized evaluations • Difference-in-differences • Propensity score matching • Regression discontinuity designs • Endogeneity and Instrumental Variables • Natural and quasi-natural experiments
Example of Policy Interventions to be Reviewed • Training programmes on earnings • Active labour market policies on employment • Educational programmes on school participation • Conditional cash-transfers on poverty and education • Community programmes on regeneration of deprived areas • Microfinance on survival of entrepreneurs
Assessment policy Continuing evaluation (assignments): 35% of the final grade Final evaluation (written exam): 65% of the final grade
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References Basic Readings 1) Books:
• Angrist, J. and Pischke, J.-S, 2008, Mostly Harmless Econometrics An empiricist’s Companion, Princeton University Press. http://tinyurl.com/aatu7fe
• Shenyang Guo and Mark W. Fraser, 2010, Propensity Score Analysis, Statistical
Methods and Applications, Sage Editorial. Copies of chapter will be provided. 2) Article Reviews:
• Duflo, E., Glennerster, R. and Kremer, M. (2007) Using Randomization in Development Economics Research: A Toolkit, CEPR Discussion Paper No. 6059. http://tiny.cc/l3gkgw
• Ravallion, Martin. 2008. “Evaluating Anti-poverty Programs.” In Handbook of
Development Economics, vol. 4, ed. T. Paul Schultz and John Strauss, 3787–846. Amsterdam: North-Holland. http://tinyurl.com/bjt7485
Additional Suggested References • Allegretto, S.A., Dube, A. and Reich, M. (2011) Do Minimum Wages Really
Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data, Industrial Relations, 50(2). http://tiny.cc/kigkgw
• Angrist, J., Bettinger, E., Bloom, E., King, E. and Kremer, M. (2002) Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment, American Economic Review, 92(5). http://tinyurl.com/cnjn4ve Bandiera, O., Barankay, I and Rasul, I. (2011) Field experiments with firms, Journal of Economic Perspectives, 25(2). http://tinyurl.com/bszbc59
• Behrman, J., Sengupta, P. and Todd, P. (2005) Progressing through Progresa: An Impact Assessment of a School Subsidy Experiment in Mexico. Economic Development and Cultural Change, 54(1).http://tiny.cc/8vgkgw
• Blundell, R. and Costa Dias, M. (2009) Alternative approaches to evaluation in empirical microeconomics, 44(3) http://tinyurl.com/cuk6btz
• Dearden, L., Emmerson, C., Frayne, C. and Meghir, C. (2009) Conditional Cash Transfers and School Dropout Rates The Journal of Human Resources, 44(4). http://tiny.cc/n0gkgw
• Hincks, S. and Robson, B. (2010) Regenerating Communities First Neighbourhoods in Wales, Joseph Rowntree Foundation. http://tiny.cc/8nhkgw
• Imbens, G., Lemieux, T. (2007) Regression Discontinuity Designs: A Guide to Practice, NBER technical working paper 337 http://tiny.cc/4igkgw
• International Food Policy Research Institute (2002) PROGRESA: Breaking the cycle of poverty Washington, DC. http://tinyurl.com/7ua8dag
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
• Johnson P. (2011) New Policies, Like New Medicines, Should First Be Put to
the Test, Guardian, http://tinyurl.com/44qob7r
• Kremer, M. (2003) Randomized Evaluations of Educational Programs in Developing Countries: Some Lessons, American Economic Review, 93(2). http://tiny.cc/3dgkgw
• Malde, B. (2008) The Randomised Evaluation Revolution in Development Economics, Economic Review. http://tinyurl.com/cwkgnsr
• Meyer, B. (1994) Natural and Quasi-experiments in Economics, NBER Technical Working Paper 170. http://tiny.cc/dhgkgw
• LaLonde, R. J. (1986) Evaluating the Econometric Evaluations of Training Programs with Experimental, American Economic Review, 76(4). http://tiny.cc/jggkgw
• Lee, D. S., and Lemieux, T. (2009) Regression Discontinuity Designs in Economics, Journal of Economic Literature, 48(2). http://tiny.cc/k8gkgw
• Love, T.E. (2003) Propensity Scores: What Do They Do, How should I use them and Why should I care? ASA Cleveland Chapter. http://tinyurl.com/cf3j4kl
• Ludwig, J. and Miller, D. L. (2007) Does Head Start Improve Children’s Life Chances? Evidence from a Regression Discontinuity Design, Quarterly Journal of Economics, 122(1). http://tiny.cc/sgikgw
• Rice, P. (2010) Minimum Wages and Schooling: Evidence from the UK's Introduction of a National Minimum Wage, University of Oxford, Economics Department Working Paper 482. http://tiny.cc/njgkgw
• Sianesi, B. (2004) An Evaluation of the Swedish System of Active Labour Market Programmes in the 1990s, Review of Economics and Statistics, 86(1). http://tiny.cc/lmhkgw
• Todd P.E. and Wolpin K. I. (2006) Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility, American Economic Review, 96(5) http://tiny.cc/jtgkgw
Contact information Name e-mail Department Office Phone Roxana Gutiérrez-Romero
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Public Policies I Subject Infrastructure Policies Lecturers Javier Asensio and Oriol Roca Year 2014-2015
Subject description This course studies the economic aspects of infrastructures using the tools of economic analysis in deciding the optimal level of infrastructure provision, the role of public and private sector in their provision and operation and shows the policy implications of the deregulation process that has taken place in infrastructure markets in recent years. The emphasis of the course is empirical, with detailed examples and case studies to show the economic consequences of alternative policy designs. Course contents 1. Introduction: economic importance of infrastructures
Economic impact of public infrastructures: demand and supply effects, net and spillover effects, crowding out effects and distributive effects.
2. Infrastructures and economic growth Models used to investigate the relationship between infrastructure and economic activity: Input Output Models, Econometric Models.
3. Decision-making on infrastructure provision Cost Benefit Analysis and beyond.
4. Models of public-private infrastructure management
The problem of monopoly in infrastructure provision and the range of possible solutions. Public provision of infrastructures and reasons for privatization.
5. Infrastructure provision with private contracts and concessions Private contracts. Infrastructure concessions and the renegotiation problem. Public Private Partnerships (PPPs).
6. Infrastructure regulation and competition Infrastructure regulation: rate of return & price cap. Vertical unbundling and the introduction of competition.
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Assessment policy Continuing evaluation (assignments, essays, in-class presentations and participation): 35% of the final grade Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade References Aschauer, D. A. Is public infrastructure productive? Journal of Monetary Economics
23, 177-200, 1989.
Engel, E., R. Fischer and A. Galetovic, The economics of infrastructure finance: Public-private partnerships versus public provision, EIB Papers, 15 (1), 2010.
Gómez-Ibáñez, J. A., Regulating infrastructure. Monopoly, contracts and discretion, Harvard University Press, 2003.
Gramlich, E.M. Infrastructure investment: A review essay. Journal of Economic Literature, Vol. XXXII, 1176-1196, 1994.
Guasch, J.L. Granting and Renegotiating Infrastructure Concessions: Doing it Right, The World Bank, 2004.
Kessides, I. N., Reforming infrastructure : privatization, regulation, and competition, Oxford University Press – The World Bank, 2004.
Newbery, D. M., Privatization, restructuring and regulation of network utilities, MIT Press, 2001.
Romp W. and de Haan, J., Public Capital and Economic Growth: A Critical Survey, Perspektiven der Wirtschaftspolitik 8 (Special Issue): 6–52, 2007.
Straub, S., Infrastructure and Development: A Critical Appraisal of the Macro-level Literature, The Journal of Development Studies, vol. 47(5), 683-708, 2011.
World Bank, World Development Report 1994: Infrastructure For Development. Oxford University Press, New York. Overview and Chapter 1, 1-36, 1994.
Contact information Name e-mail Department Office Phone Javier Asensio Oriol Roca
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module PUBLIC POLICIES I Subject INNOVATION POLICIES Lecturers ISABEL BUSOM Year 2014-2015
Subject description This course aims at providing tools to understand economic research on determinants and consequences of innovation, the economic grounds for innovation policy and its design, current innovation policies and their evaluation. The course will have a strong empirical focus: it intends to help you understand available methods for an evidence based innovation policy. Upon completion of this course, you should be able to 1) understand the economic rationale for government involvement in innovation and science policy; 2) discuss what the impact of such involvement may be; 3) find and interpret sound empirical research on these issues, and 4) analyze current policies. Course contents
1. Introduction: questions, measurement and facts 2. Firms, R&D and Innovation 3. The nature of innovation: market failures 4. Innovation Policy: conceptual issues 5. Intellectual Property 6. Direct Support and Tax Incentives 7. Other instruments
Assessment policy Continuing evaluation (assignments, essays, in-‐class presentations and participation): 35% of the final grade Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade References There is no textbook for this course, but some chapters of the following books will be useful: Bronwyn H. Hall and Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, Elsevier, North Holland 2010.
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Christine Greenhalgh and Mark Rogers, Innovation, Intellectual Property and Economic Growth, Princeton University Press 2010. Suzanne Scotchmer, Innovation and Incentives, MIT Press, 2004. OECD (2013) "Supporting Investment in Knowledge Capital, Growth and Innovation", OECD Publishing , Publication date: 10 Oct 2013 In addition, empirical research papers will be provided and discussed during the sessions. Contact information Name e-mail Department Office Phone Isabel Busom [email protected] Economia
Aplicada B3-120 93 581 2206
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Public Policies II Subject Environmental Policies Lecturers Emilio Padilla Rosa Year 2014-2015
Subject description The aims of the subject are: To review the economic analysis of main environmental problems as well as the different environmental policy tools. To understand the relationship between economic, social and ecological systems. To study the analytical tools of the economics of the environment. To analyse the main current debates in the field. Course contents
1. The economic analysis of the environment and ecological economics. The relationship between the economy and the environment. The economy and environmental problems.
2. Markets operation and environmental degradation. Justifications for public
intervention with environmental policies. Microeconomic analysis of pollution.
3. Different conceptions of sustainable development and their applications. 4. Economic appraisal of environmental policies. Valuation problems. 5. Economic analysis of the environment and future generations. Ethics and
ecological economics. 6. Environmental policy tools: environmental taxes. 7. Environmental policy tools: tradable permits and others. 8. The relationship between economic growth, environmental quality, and
environmental policies. 9. Global environmental problems: Economics and policy of climate change.
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Assessment policy
• Individual written essays (35%)
• Final exam (65%) References Main Books Bergh, J.C.J.M van den (ed.) (1999). Handbook of Environmental and Resource
Economics. Edward Elgar, Cheltenham. Common, M., Stagl, S. (2005). Ecological Economics. Cambridge University Press,
Cambridge. Jacobs, M. (1991) The Green Economy. Pluto Press, London. Pearce, D.W., Turner R.K. (1990) Economics of Natural Resources and the
Environment. Harvester Wheatsheaf, London. Stavins, R. N. (ed.) (2000) Economics of the Environment, Selected Readings, W. W.
Northon and Company, New York and London. There are several journals, which you can refer to. These include: Ecological Economics, Environmental Values, Environmental and Resource Economics, Energy Policy, Energy Economics, Journal of Environmental Economics and Management, Land Economics, Environment and Planning (A) and (C), Environment & Development Economics, Journal of Environment and Development. Contact information Name e-mail Department Office Phone emilio.padilla @uab.es Applied Economics B3-0112 93 581 1276
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Extended bibliography Unit 1: Boulding, K.E. (1966) “The Economics of the Coming Spaceship Earth” H. Jarrett (ed.),
Environmental Quality in a Growing Economy, pp. 3–14. Baltimore, MD: Resources for the Future/Johns Hopkins University Press.
Daly, H. E. (1987) “The Economic Growth Debate: What Some Economist Have Learned But Many Have Not”, Journal of Environmental Economics and Management, vol. 14, n.4, 1987: 323–336.
Daly, H. E. (1999) “Steady-state economics: avoiding uneconomic growth” in J.C.J.M. van den Bergh (ed), Handbook of Environmental and Resource Economics, Edward Elgar, Chelktenham, UK.
Georgescu-Roegen, N. (1977) “What Thermodynamics and Biology Can Teach Economists”, Atlantic Economic Journal, Vol.5 (1), pp. 13–21.
Kapp, K. W. (1976) "The open system character of the economy and its implications ", en Kurt Dopfer (ed.) Economics in the Future: Towards a New Paradigm, London. (Spanish online versión in Aguilera and Alcántara, 1994).
Unit 2: Aguilera-Klink, F. (1994) “Some Notes on the Misuse of Classic Writings in Economics on the
Subject of Common Property”, Ecological Economics, Vol. 9 (3), pp. 221–228. Ayres, R.U., Kneese, A. V. (1969) " Production, Consumption, and Externalities ", American
Economic Review, Vol. 59 (3), pp. 282–297. Coase R.H. (1960) " The Problem of Social Cost”, Journal of Law and Economics, Vol. 3, pp.
1–44. Gordon, H.S. (1954), “Economic Theory of a Common-Property Resource: the Fishery”,
Journal of Political Economy, Vol. 62, pp. 124–142. Hardin, G. (1968) “The Tragedy of Commons”, Science, Vol. 162, pp. 1243–1248. Mishan E.J. (1971) “The postwar literature on externalities: An interpretative essay”, Journal of
Economic Literature, Vol. 9 (1), pp. 1–28. Ostrom, E. et al. (1999) “Revisiting the Commons: Local Lessons, Global Challenges”, Science
284. pp. 278–282. Pigou A. C. (1920) The Economics of Welfare. Macmillan and Co, London. Unit 3: Alcántara, V., Padilla, E. (2003) “Key sectors in final energy consumption: an input–output
application to the Spanish case”, Energy Policy, Vol. 31, pp. 1673–1678. Bergh, J.C.J.M van den, Verbruggen, H. (1999) “Spatial sustainability, trade and indicators: an
evaluation of the ‘ecological footprint’”, Ecological Economics, Vol 29, pp. 61–72. Daly, H.E., “Georgescu-Roegen versus Solow/Stiglitz” (1997) and answers or Solow, R.M. and
Stiglitz, J.E., Ecological Economics, Vol. 22, n. 3, pp. 261–270. Hamilton, K., Clemens, M. (1999), “Genuine savings rates in developing countries”, World
Bank Economic Review, vol. 13: 333–356. Mathews, E. et. al, (2000) The Weight of Nations, World Resources Institute. Naredo, J.M. (1999), “Sobre la “sostenibilidad” de los sistemas”, Ch. 5 of Naredo, J.M. and
Valero, A. (dir), Desarrollo Económico y Deterioro Ecológico, Fundación Argentaria/Visor dist., Madrid.
Pearce, D.W., Atkinson, G.D. (1993) "Capital Theory and the measurement of sustainable development: an indicator of “weak” Sustainability", Ecological Economics, Vol. 8, pp. 103–108.
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Solow, R.M. (1991) “Sustainability: An Economist’s Perspective” in Stavins (2000).
Victor, P. A. (1991), “Indicators of sustainable development: some lessons from capital theory”, Ecological Economics, vol. 4, 1991: 191–213.
Wackernagel, M., Rees, W. (1997) “Perceptual and structural barriers to investing in natural capital: economics from an ecological footprint perspective”, Ecological Economics, Vol. 20, n. 1, pp. 3–24.
Units 4 and 5: Arrow, K.J., Cline, W.R., Mäler, K.J., Munashinghe, M., Stiglitz, J.E. (1995) “Intertemporal
Equity and Discounting” en Munashinghe, M. (ed), Global Climate Change: Economic and Policy Issues, World Bank Environment Paper, n. 12, Washington.
Bromley (1989) “Entitlements, missing markets and environmental uncertainty”, Journal of Environmental Economics and Management, Vol. 17, pp. 181–194.
Brown, P.G. (1998) “Towards an economics of stewardship: the case of climate”, Ecological Economics, Vol. 26, pp.11–21
Carlson, R. T. et al. (2005) “Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill” in Stavins (2005)
Diamond, P.A., Hausman, J.A. (1994) “Contingent valuation: is some number better than no number?”, Journal of Economic Perspectives, Vol. 8, pp. 45–64.
Kahneman, D., J.L. Knetsch (1992) Valuing public goods: the purchase of moral satisfaction, Journal of Environmental Economics and Management, Vol. 22, n.1, pp. 57–70.
Kelman, S. (1981) “Cost Benefit Analysis: An Ethical Critique” (and answers of different authors), AEI Journal on Government and Society Regulation, pp. 33–40.
Kula, E. (1992), Economics of Natural Resources and the Environment, Chapman and may, Londres, cap. 2.
Markandya, A., Pearce, D. (1988) “Natural environments and the social rate of discount”, Project Appraisal, Vol. 3, pp. 2–12.
Padilla, E. (2002) “Intergenerational equity and sustainability”, Ecological Economics, Vol. 41 (1), pp. 69–83.
Sterner, T. (1994) “Discounting in a World of Limited Growth”, Environmental and Resource Economics, vol. 4: 527–534.
Units 6 and 7: Baumol W., Oates W. (1975). Theory Of Environmental Policy. Cambridge University Press. Hotelling, H., (1931) “The Economics of Exhaustible Resources”, Journal of Political
Economy, vol. 22, n.9, pp. 137–175. Krutilla, J.V. (1967) “Conservation reconsidered”, American Economic Review, vol. LVII:
778–786. Padilla, E., Roca, J. (2004) “The proposals for a European tax on CO2 and their implications for
intercountry distribution”, Environmental and Resource Economics, Vol. 27, n 3, pp. 273–295.
Palmer, K., Oates, W.E., Portney, P.R. (1995) “Tightening Environmental Standars: The Benefit–Cost or the No-Cost Paradigm?” en Stavins (2000).
Porter, M., van der Linde, C. (1995) “Toward a New Conception of the Environment–Competitiveness Relationship” in Stavins (2000).
Schmalense, R., Joskow, P.L., Ellerman, A.D., Montero, J.P., Bailey, E.M. (1998) “An Interim Evaluation of Sulfur Dioxide Emissions Trading?”, Journal of Economic Perspectives, 12 (3): 53–68.
Spash, C. L.(2010) “The Brave New World of Carbon Trading”, New Political Economy, Vol. 15 (2), pp. 169–195.
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Unit 8: Dasgupta, S., Laplante, B. Wang, H., Wheeler, D. (2002) “Confronting the environmental
Kuznets curve”, Journal of Economic Perspectives, Vol. 16, pp. 147–168. Ekins, P. (1997) “The Kuznets curve for the environment and economic growth: examining the
evidence”, Environment and Planning A, Vol. 29, pp. 805–830. Roca, J., Padilla, E, (2003) “Emisiones atmosféricas y crecimiento económico en España: la
curva de Kuznets ambiental y el Protocolo de Kyoto”, Economía Industrial, n. 351, pp. 73–86.
Roca, J., Padilla, E., Farré, M., Galletto, V. (2001) “Economic Growth and Atmospheric Pollution in Spain: Discussing the Environmental Kuznets Curve Hypothesis”, Ecological Economics, Vol. 39, n. 1, pp. 85–99.
Stern, D.I., Common, M.S. and Barbier, E.B., (1996) “Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development”, World Development, vol. 24, 1151–1160.
Unit 9: Azar, C. (1998) “Are Optimal CO2 Emissions Really Optimal?”, Environmental and Resource
Economics, vol. 11, n.3–4: 301–315. Azar, C. (2000) “Economics and distribution in the greenhouse”, Climatic Change, vol. 47:
233–238. Cline, W.R. (1992) The Economics of Global Warming. Institute for International Economics,
Washington, DC. IPCC (2001a) Climate Change 2001: The Scientific Basis: Contribution of Working Group I to
the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge.
IPCC (2001b) Climate Change 2001: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge.
IPCC (2001c) Climate Change 2001: Mitigation. Contribution of Working Group III to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge.
IPCC (2007): Climate Change 2007: The Physical Science Basis, Summary for Policymakers, Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge.
Nordhaus (2007) "A Review of the "Stern Review on the Economics of Climate Change", Journal of Economic Literature, Vol. 45 (3), pp. 686–702.
Nordhaus, W.D. (1993) “Reflections on the Economics of Climate Change” in Stavins (2000). Padilla, E. (2004) “Climate Change, Economic Analysis and Sustainable Development”,
Environmental Values, Vol. 13, n. 4, pp. 523–544. Pearce, D., Cline, W.R., Achanta, A.N., Fankhauser, S., Pachauri, R.K., Tol, R.S.J. y Vellinga,
P. (1996) The Social Costs of Climate Change: Damages and Benefits of Control, Intergovernmental Panel of Climate Change: Working Group III Report, Cambridge University Press, Cambridge.
Spash, C.L., (2007). "The economics of climate change impacts a la Stern: Novel and nuanced or rhetorically restricted?," Ecological Economics, 63 (4), pp. 706–713.
Stern, N. (2006) “Stern Review Report on the Economics of Climate Change”; Cambridge University Press, Cambridge.
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Module Public Policy Subject Health Economics and Policy Analysis Lecturers Xavier Martinez-Giralt Year 2014-2015
Subject description The course will provide a broad overview of the field of health economics. It is designed to illustrate how economists analyze topics related to the production of health and the delivery of health care. The course will examine how standard concepts and methods in economics can be used to understand health-related decisions made by individuals and firms. It will also study the application of economics to health care policy, with a focus on how economic analysis can assist in the development of market and non-market solutions to various health care problems.
We will focus on theories of microeconomics with specific applications to the health care system. Using economic analysis, the course will examine important health policy issues such as the integration of the health care delivery system, the role of government programs, the impact of competition and regulation on providers and patients, the design of health insurance plans, managed care, the value of health care, and strategies for containing health care costs and increasing access to health care. Particular attention will rely on the role of incentives in shaping the structure, conduct and performance of the health care sector.
The goal of the course is to teach students to use basic economic principles to develop a better understanding of the health care sector and health policy issues. Course contents
1. What is Health Economics 1.1 Differential characteristics of health economics 1.2 The organization of a health care system 1.3 Structure of a health care system
This chapter provides an introduction to the topic of health economics. In particular, describes generically the elements of a health system, identifies the agents that participate in a health system and their decision-making, and looks at the characteristics that make the sector subject of study within the economy.
2. Demand for health and health care 2.1 Value of life and quality of life 2.2 Demand for health
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When an individuals turn into patients, demand health care services to recover their full capacity to develop their regular activities. The chapter examines how and how much the patient demands health treatments and what are the elements that determine such demand.
3. Health insurance 3.1 Basic concepts 3.2 Uncertainty and risk 3.3 Insurance
The occurrence of a sickness episode contains elements beyond the control of the very individual, but also it is conditioned by life habits. These circumstances are captured by the concpets of uncertainty and risk. At the same time, a sickness episode translates into a shock in the individual’s income. To cover against this shock, the individual has the possibility to contract insurance. This chapter is devoted to study the relation between risk and insurance as well as the elements determining the decision to contract insurance.
4. Contracts and asymmetric information 4.1 The problem of information 4.2 Imperfect information and competition 4.3 Incentives in the health care sector 4.4 Asymmetric information and conflict of objectives 4.5 Supplier-induced demand
One of the main features in the healthcare market place is the prevalence of asymmetric information between patients and providers, patients and insurers, and providers and insurers. This has important consequences in the understanding the incentives of the different agents in their relations with the otehr agents, and in their decision-making. This chapter is devoted to the study of how the agents close down the contracts that drive their relationships.
5. Supply of health care 5.1 Production functions for hospitals 5.2 Cost functions for hospitals 5.3 The objective function of a hospital 5.4 Reimbursement systems
The chapter studies how providers of healthcare services determine their level of provision and quality. The focuss relies mainly in the hospital decision-making. In particular, we identify different models of hospital according to what agent(s) have the responsibility to decide the optimal behavior of the hospital.
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
6. For-profit and nonprofit organizations 6.1 Why do nonprofit organizations exist? 6.2 Modeling nonprofit organizations 6.3 What do nonprofit hospital maximize?
The presence of nonprofit institutions is a distinctive feature in the healthcare sector. Thus, the first question is to identify the differential characteristics of a nonprofit institution from a forprofit one. Next, the coexistence of nonprofit institutions together with forprofit ones is an elusive question. The chapter looks at arguments of quality and non-pecuniary rewards as elements relevant in identifying an answer.
7. What is Health Policy This is an introductory chapter to the the meaning and content of health care policy.
8. Competition and Regulation 8.1 Yardstick competition 8.2 Regulating the health care market
The chapter studies the main consequences of competition and the regulatory instruments with a particular focus in the healthcare market.
9. Equity in health care 9.1 Equity in finance 9.2 Equity in distribution
Equity is probably the main normative question in the analysis of the healthcare marketplace. There are several definitions of equity and thus different policy instruments to achieve it. The chapter is devoted to revise these different approaches to the notion of equity. Particular atention is devoted to the criteria of financing and distribution as defining elements of equity.
10. Political economy of health care 10.1 Collectively financed health care in a democracy 10.2 The role of professional associations in health care
The political economy of health refers to a body of analysis and a perspective on health policy to understand the conditions shaping population health and health service development. The chapter will focus on political choices including interest groups, voting behavior, and institutions like professional associations.
11. Governance in health care systems 11.1 Accountability and delegation 11.2 Accountasbility and financing 11.3 Accountability and performance 11.4 Accountability and information 11.5 Accountability and enforcement
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"Governance" refers to the process of decision-making and the process by which decisions are implemented (or not implemented). The increased interest in governance has been driven by the need for greater accountability, arising from both increased funding and a growing demand to demonstrate results. An intrinsic aspect of governance, therefore, is accountability. This concerns the management of relationships between various stakeholders in health including individuals, households, communities, firms, governments, non-governmental organizations, private firms, and other entities which have the responsibility to finance, monitor, deliver, and use health services (World Bank 2004).
12. Bargaining in health care provision 12.1 A primer in bargaining theory 12.2 Negotiation between payers and providers 12.3 Bargaining within a national health service 12.4 Ways to enhance bargaining power
A common characteristic of managed care and national health systems is the presence of independent institutions that negotiate the reimbursement of health care provision. This chapter develops in detail the economic rationale and policy relevance of the analysis of explicit bargaining processes in health care provision. After an introduction to the basic features of bargaining theory, it moves on to an analysis of bargaining between third- party payers and providers. The main feature is that the outcome of the negotiation in terms of the reimbursement rules has an impact on the competition among providers and on the design of the health insurance contract.
Assessment policy Continuing evaluation (assignments, essays, in-class presentations and participation): 35% of the final grade Final evaluation (written exam and/or essay and/or oral presentation): 65% of the final grade References Main references Barros, P.P. and X. Martinez-Giralt, 2012, Health Economics. An Industrial Organization Perspective, New York, Routledge. McPake, B., Ch. Normand, and S. Smith, 2013, Health Economics. An international perspective, New York, Routledge.
Master in Economics and Business Administration
MEBA – Facultat d’Economia i Empresa – Edifici B – Universitat Autònoma de Barcelona – 08193 Bellaterra - SPAIN
Complementary references Anderson, G. and P. Markovich, 2010, Multinational Comparisons of Health Systems Data, 2008, The Commonwealth Fund. Feldstein, P.J., 2002, Health Care Economics, Thomson, Delmar Learning, Clifton Park, NY. Folland, S., A.C. Goodman, and M. Stano, 2004, The Economics of Health and Health Care, Upper Saddle River, NJ, Prentice Hall. Glied, S. and P.C. Smith (eds.), 2011, The Oxford Handbook of Health Economics, Oxford, Oxford University Press. Jacobs, P., 1997, The Economics of Health and Medical Care, Aspen Publishers, Gaithersburg, Maryland. Jones, A.M. (ed.), 2006, Elgar Companion to Health Economics, Cheltenham, Edward Elgar. Levitt, S.D. and S.J. Dubner, 2011, Superfreakonomics, Harper Collins, New York. Macho-Stadler, I. and D. Perez-Castrillo, 2001, An Introduction to the Economics of Information, Oxford, Oxford University Press. Morris, S., N. Devlin and D. Parkin, 2008, Economic Analysis in Health Care, Wiley, Mossialos, E., G. Permanand, R. Baeten, and T. Hervey (eds.), 2010, Health Systems Governance in Europe. The Role of European Union Law and Policy, Cambridge University Press. OECD, 2010, Health Policy Studies - Improving Value in Health Care: Measuring Quality, OECD Publishing. OECD, 2010, Health Policy Studies - Value for Money in Health Spending, OECD Publishing. OECD, 2011, Economic Policy Reforms 2011: Going for Growth, OECD Publishing, Chapter 6. Phelps, C.E., 1992, Health Economics, Harper Collins, New York. Puig-Junoy, Jaume, 2013, Paying for Free Healthcare. The role of prices in our healthcare decisions, (e-book), Barcelona, Los libros del lince. Reisman, D., 2007, Health Care and Public Policy, Cheltemham, Edward Elgar.
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Santerre, R.E., and S.P. Neun, 2004, Health Economics. Theories, Insights, and Industry Studies, Thomson, South-Western, Mason, Ohio. Savedoff, W.D., 2011, Governance in the Health Sector. A Strategy for Measuring Determinants and Performance, Policy Research Working Paper 5655, The World Bank. Wonderling, D., R. Gruen, and N. Black, 2005, Introduction to Health Economics, Open University Press, Maidenhead, Berkshire. Zweifel, P., F. Breyer and M. Kifmann, 2009, Health Economics, Springer, Berlin. Contact information Name e-mail Department Office Phone Xavier Martinez-Giralt
