Keuzevakken Master Handelswetenschappen Electives in the Master Business Administration
Choose 1 course out of:
• Advanced Micro-Economics• Culture and Economies• Economics of Innovation• Economics of Social Security and Social Insurance• Environmental Economics• Public Economics
Advanced MicroContents
• Introduction to basic concepts and ideas of Industrial Organization (IO)– IO is concerned with how firms compete
• Focus is on markets with imperfect competition– Central concept is market power
» Is there market power?» How do firms acquire and maintain market power?» What are the implications of market power?» Role for public policy regarding market power?
– Difference between Micro and IO• Micro focuses on perfect competition and
monopoly
Advanced MicroContents
Lecture Chapter Title Chapter
1 Introduction & What Is IO? 1
2 Basic Microeconomics 2 & 3
3 Basic Microeconomics & The Firm 2 & 3
4 Monopoly And Regulation 5
5 Perfect (And Almost Perfect) Competition 6
6 Games and strategy 4
7 Oligopoly 7
8 Collusion 8
9 Market structure and Market power 9
10 Price Discrimination 10
11 Vertical Relations 11
12 Product Differentiation 12
13 Entry Costs, Market Structure and Welfare 14
Small changes in the program are possible, depending on how fast we move.
Advanced MicroApproach
• Weekly lecture– Illustrate and explain most important insights from the
textbook• CABRAL, L. (2000), Introduction to Industrial Organization,
MIT Press
– Where appropriate by means of practical examples– Additional material available on HUBWise
• Slides and mathematical notes
Advanced MicroPrerequisites
• Introductory course in– Micro economics or Managerial Economics– Mathematics for economists
• Simple mathematical skills are required– Solve system of linear equations– 1st and 2nd order derivatives, Integrals– Solve constrained maximization problem
Advanced MicroEvaluation
• Written, closed-book exam– Some (probably 5) multiple choice questions
• 1 point per MC question
– 2 or 3 exercises or open questions
• Test• (1) insight into theoretical concepts of the subject matter• (2) ability to apply theoretical concepts to case studies
Contents Economic activities (work, consumption,
saving,...) and structures (markets, firms, government, households) are immersed in a web of cultural sensemaking
Illustrations Why can one buy some things market (roses
and sex) and others not (children and love)? What about the cultural meaning of market
objects (the status following from a BMW or Apple computer)?
Do the poor want more social welfare provisions and rich less taxes?
Is corruption a cultural or a structural feature?
Culture & Economies
Culture & Economies
First few weeks: theoretical and conceptual introduction
Afterwards: One empirical theme per week, reading before Introductory lecture Assignment in small groups Presentation and discussion
Both quantitative and qualitative studies Scoring system: ¼ assignments, ¾
exam (case and multiple choice)
Approach
Economics of Innovation (Johan Albrecht)
Contents
• What is ‘economics of innovation’, why innovation policy?
• Innovation and industrial evolution• Dynamics of innovation in network
economies (economics of QWERTY)• How to organise innovation policy?
Economics of Innovation
Approach
• Perspective is macro, policy-oriented (not the typical management perspective)
• Building blocks are first introduced • Innovation dynamics in selected industries
are analysed from an historical perspective (IT, biotech) and later applied in the case of energy technology innovations (renewables)
• ex-cathedra (230 students)
Economics of social security and social insurance
Contents
• Welfare state: publicly or privately organised• Sources of financing of the welfare state • Overview of social protection models• Pensions, ageing and early retirement• Health care systems in Europe• Health care system and reform in the US• Unemployment and labour market institutions in
Europe• Child care policies, fertility and female labour
supply• Poverty and income inequality in OECD countries
Pensions, ageing and early retirement
• Demographic ageing• Early retirement
>>> consequences on financial sustainability?
• Why so much political resistance against pension reforms?
Health care systems in EU
• Causes increased health spending?• How can we improve health performance
while limiting health spending?
Health care in the US
• Why health care system US inefficient?• Reform of Obama: the change the US
needs?• Why so much resistance against reforms?
Unemployment in Europe
• In EU: high unemployment and low poverty while in US low unemployment and high poverty >>> trade-off?
• NO: Denmark: flexicurity approach >>> low unemployment and low poverty
Childcare policies, fertility and female labour supply
• Why high fertility and female labour supply in Scandinavia < > low fertility and female labour supply in Mediterranean countries
• Child care policies: – Longer maternity leave? Paternity leave?– Subsidizing public childcare services?– Higher family allowances?
>>>impact on female labour supply, child wellbeing and budget governement?
Poverty
• Causes of poverty?– Low labour demand low-skilled?– Increase of divorced single parent families?– Poor people have no incentive for job search?
• Why poverty low in Sweden and high in UK?
• How to reduce poverty?
Economics of social security and social insurance
Approach • course:
• textbook “Welfare state in the European Union”, Pestieau(2005)
• slides• recent articles for case-studies (on
HUBwise)• exam:
• written• closed book• open questions
Exam questions January 2010
• Fundamental parameters that determine financial sustainability of PAYG pension systems? Should we switch to Fully funded pension systems? Why (not)?
• Reasons inefficiency of US health system? How to improve health performance and/or contain health spending? To what extent is this achieved by the Obama reform?
• Most EU countries finance social protection by payroll taxes. Disadvantages related to this source of financing? Explain!
Environmental EconomicsAcademic year 2010-2011
Johan Eyckmans
Course objectives
• After this course, students should:– be able answer the question: what is, from a society
point of view, the desired level of environmental quality,
– know the most common valuation techniques for non-market goods and services,
– have an insight in the advantages and disadvantages of different environmental policy instruments.
– how profit maximizing businesses should react on specific environmental policy instruments.
Valuation techniques
• Valuation of negative externalities of noise externalities of Brussels airport by means of hedonic price techniques (house sales prices):
Carbon emissions trading
• EU ETS: price formation,fundamentals, future regulatory framework, …
Are we running out of oil?• Hoteling model
2525
p(t)
q(t) e(t)
time
time
T
T
pbackstop 45°
price path
extraction path
S°-S(t) S(t)
Course material
• PPT slides:– HUBwise
• Textbook:– Hanley, N., Shogren, J., and B.
White. 2001. Introduction to Environmental Economics. Oxford University Press.
– Through campus bookshop.– 35£ = 40€ at Amazon.co.uk
Exam
• WRITTEN and CLOSED BOOK exam.• A number of multiple-choice questions [10pt]
– Require theoretical insight into the subject matter. – Correction for random guessing:
• A number of open questions [10pt]– Testing your capacity to situate current environmental
problems and policy instruments in the course material (recent articles and/or case studies).
– Some questions require basic arithmetic skills.
Public Economics
Contents
• Why does a government intervene in the economy?
• And by doing so, can it increase total welfare of its population?
Public EconomicsApproach• We explain government intervention by means
of economic theory• We refer to real life examples:
• Is Obama’s health care reform a good thing for US citizens?
• What is the role of the government in the financial sector?
• Should a government support the construction of the electrical car?
• At the end of the course, students should be able to provide an answer to such questions that is not only based on “gut feeling”.
Choose 1 course out of:
• Advanced Corporate Finance• Corporate Social Responsibility• Decision Making• Economic Law: Capita Selecta
Advanced Corporate Finance
• Even for those with a ‘trauma’ of ‘Financieel Beleid’ or ‘Financial Policy’
• Focus on understanding theory and be able to apply the quantitative elements
Advanced Corporate Finance
Contents
• Mergers and acquisitions• Motives (theory and empirical evidence)• Merger waves• Estimating merger gains and costs
• Corporate Restructuring• Diversification and its value effects• Leveraged (LBO) and management buy out
(MBO)• Spin-offs, equity carve-outs, asset sales• Private equity
Advanced Corporate Finance
Contents
• Valuation• Comparables• Real Options Valuation• Discounted Cash Flow Valuation• Capital Cash Flow Valuation
• Governance and Corporate Control around the world
• Ownership, control and corporate governance• Agency problems• Family ownership
Approach
• Formal lectures • Assignments
• Apply theoretical concepts (calculation of abnormal returns in event studies, valuation of takeover target)
• Case studies
Advanced Corporate Finance
Corporate Social Responsibility
Why CSR?
“…the business policies we adopt, the decisions that we make and the strategies we pursue over the next decade or two will determine the future of our species and the trajectory of the planet for the foreseeable future. That is an awesome responsibility, to say the least. It is also a huge opportunity.”(Stuart Hart, 2005)
Corporate Social Responsibility
Objectives
• To introduce theories, concepts and frames of reference related to different aspects of CSR
• To present tools and instruments for putting CSR in practice
• To stimulate critical reflection on business cases from a CSR point of view
Corporate Social Responsibility
ContentsIntroduction1 General introduction2 CSR from a business practice perspectiveCSR as business-in-context3 Ecological system boundaries4 CSR and social developmentManaging CSR5 Integrating People – Planet - Profit6 CSR and philantropy7 Stakeholdermanagement8 Strategizing CSR9 Systems, guidelines & tools for CSRSpecific topics10 Internal actors: marketing, HRM, fiscality11 External actors: consumers, NGO’s, government12 Integration
Corporate Social Responsibility
Approach
• Theory and practice• Guest lecturers• Cases• Active participation by students• Critical debate
Corporate Social Responsibility
Course materialSlides on HUBWise5 articles (on HUBWise):
• Kakabadse, N., Rozuel, C. & Lee Davies, L. (2005). Corporate Social Responsibility and Stakeholder Approach: a Conceptual Review. (Topic 1)
• Elkington, J. (1994). Towards the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development. (Topic 5)
• Mitchell, R., Bradley, R., Agle, B. & Wood, D. (1997). Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. (Topic 6)
• Carroll, A. (1991). The Pyramid of Corporate Social Responsibility: Toward a Moral Management of Organizational Stakeholders. (Topic 7)
• Porter, M. & Kramer, M. (2006). Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.
Optional reading • Fisher, C. & A. Lovell (2009). Business Ethics and Values. Individual, Corporate and
International Perspectives. Harlow: Prentice Hall.• For the Dutch-speaking students: De Prins, M., Devooght, K., Janssens, G. & Molderez, I.
(Eds.) (2009). Maatschappelijk Verantwoord Ondernemen. Van strategische visie tot operationele aanpak. Antwerpen: De Boeck.
Corporate Social Responsibility
Evaluation
• Written exam• Description of 2 concrete cases• Demonstrate you can ground analysis and decisions
with the theories and concepts of the course
Decision MakingLearing Objectives• To obtain in depth-insight into the theoretical framework of a
number of decision-making tools relevant in economics and management and the research conducted regarding this topic
• To understand the application of decision-making tools in a number of already existent case-studies
• Being able to select the appropriate method/tool to a specific decision-making problem
• Being able to apply oneself the appropriate decision-making tool to new problems, following a research-based procedure
• This course is strongly research based and hence of a high academic level, though also very policy- and practice- oriented
Decision MakingCourse Content
PART 1 : INTRODUCTIONChapter 1 : Introduction
PART II : PRIVATE INVESTMENT ANALYSIS (Recapitulated)Chapter 2 : Private investment analysis recapitulated
PART III : SOCIAL COST-BENEFIT ANALYSISChapter 3 : Introduction and welfare economic basisChapter 4 : Measuring costs and benefits in a perfect marketChapter 4b: Example (Iron Rhine Project)Chapter 5 : Measuring costs and benefits in a non perfect
marketChapter 5b: Example continuedChapter 6 : Comparing costs and benefits over timeChapter 7 : The use of decision criteriaChapter 8 : Final thoughts regarding SCBA
Decision MakingCourse Content (2)
PART IV : COST EFFECTIVENESS ANALYSISChapter 9 : Cost-effectiveness analysis
PART V : REGIONAL ECONOMIC IMPACT STUDYChapter 10 : Regional economic impact study
PART VI : ENVIRONMENTAL IMPACT ASSESSMENTChapter 11 : (Strategic) Environmental impact assessment
Decision MakingCourse Content (3)
PART VII MULTI-CRITERIA ANALYSISChapter 12 : IntroductionChapter 13 : Basic principles of preference relations and
modelsChapter 14 : Generation of a set of actionsChapter 15 : Generation of a set of criteriaChapter 16 : Constructing the evaluation matrixChapter 17 : Intercriteria comparisons and overview of
aggregation proceduresChapter 18 : Overview of various MCA methodsChapter 19 : Personal contributions to and applications of
MCAChapter 20 : Final conclusions regarding MCA
Decision Making
Compulsory Study material
• K. De Brucker (2010), Syllabus Decision-making (vol. I) (copies of lecture schemes), Hogeschool-Universiteit Brussel, 2010
• K. De Brucker, ed. (2010), Syllabus Decision-making (vol. II) (copies of selected articles), Hogeschool-Universiteit Brussel, 2010
• Students are also supposed to take notes of the main ideas of the lectures as a complement to the course material provided by the professor
Decision MakingGuidelines for the exam
• Traditional written exam closed book end of semester• Some questions may take the form of an exercise or a (pseudo)
real-life decision-making problem. A limited number of questions may be in the form of MC questions (max. 6 points out of 20)
• Also the compilation of articles (syllabus vol. II) (partly home-study material) are part of the exam material (according to the conditions stipulated for this purpose)
• Reproduction, insight as well as association are tested• Both the faculty of analysis and synthesis are tested• The exam has the same set-up in each of the exam periods• This course is strongly research based and of a high academic
level, though also very policy- and practice-oriented
Decision MakingPrerequisites• Micro-economics (demand and supply, the notion of utility,
willingness to pay, public goods, external effects, market models)
• Basic notions of statistics (measurement scales, etc.)• Basic notions of mathematics (interest rates, discounting,
matrix algebra)• Basic notions of macro-economics (especially GDP,
multipliers, input-output analysis)
Economic Law – Capita Selecta(B. Keirsbilck)
Contents• Basics of EU law and national legal systems• Free movement of goods, persons, services and capital• Preventing unfair commercial practices• Safeguarding competition on the market• Formation and functioning of companies• Protecting intellectual property (copyright, patents & designs,
trademark)• Facilitating contract-making (agency, distribution, licensing,
franchising)• International trade law• Economic law in times of a global financial and
economic crisis• …
Economic Law – Capita Selecta(B. Keirsbilck)
Approach
• Objectives: identifying the main legal issues in cross-border business (within and outside the EU) and knowing how to deal with them in practice
• Presuppositions: active interest in the legal context of doing business and a basic knowledge of law
• Approach:• 13 classes, theory combined with practice• slides, cases and legal materials (directives, …) available
via HUBwise; importance of good class notes• written exam (legal materials published
on HUBwise may be consulted)
Good luck with your choice!