Servizi per la didattica
PORTALE DELLA DIDATTICA

Economics

05OIYPH

A.A. 2019/20

Course Language

Inglese

Course degree

Master of science-level of the Bologna process in Engineering And Management - Torino

Course structure
Teaching Hours
Lezioni 40
Esercitazioni in aula 40
Teachers
Teacher Status SSD h.Les h.Ex h.Lab h.Tut Years teaching
D'Ambrosio Anna   Ricercatore L240/10 SECS-P/06 40 0 0 0 2
Teaching assistant
Espandi

Context
SSD CFU Activities Area context
ING-IND/35
SECS-P/06
4
4
B - Caratterizzanti
F - Altre (art. 10, comma 1, lettera f)
Ingegneria gestionale
Altre conoscenze utili per l'inserimento nel mondo del lavoro
2019/20
The course is intended to present the most relevant economic theories in order to allow students to learn the economic reasoning necessary to understand how the economic system and the markets work. After a description of the main macroeconomic problems and the tools necessary to understand the structure of an aggregate economic system, the two most important theories about the functioning of an economic system will be presented. The first one is the neo-classical school, which represents the micro-foundation of the mainstream macroeconomic theory whereas the second one is the Keynesian one. Both theories focus on how resources are allocated in the short run. The last part of the course will deal with open macro-economics, i.e. the equilibrium of an aggregate economic system open to exchanges in goods, services and capitals with the rest of the world. The specific goals of the course are to provide the students with: 1. the knowledge of the main economic theories on the functioning of an aggregate economic system; 2. the ability to critically interpret the news about the economic conditions of a country and of the rest of the world.
The course is intended to present the most relevant economic theories in order to allow students to learn the economic reasoning necessary to understand how the economic system and the markets work. The course starts with a description of the main economic problems and the tools necessary to understand the structure of an aggregate economic system. Then, the course presents the key micro-foundations of the mainstream macroeconomic theory, focusing in particular on consumer theory, firm theory and the reaching of equilibrium in competitive and monopolistic markets. Following this, the two most important macro-economic theories about the functioning of an economic system will be presented. The first one is the neo-classical school, whereas the second one is the Keynesian one. Both theories focus on how resources are allocated in the short run. The last part of the course will deal with open macro-economics, i.e. the equilibrium of an aggregate economic system open to exchanges in goods, services and capitals with the rest of the world. The specific goals of the course are to provide the students with: 1. the knowledge of the main economic theories on the functioning of an aggregate economic system; 2. the ability to critically interpret the news about the economic conditions of a country and of the rest of the world.
Students will learn basic economic concepts. They will also learn how to apply economic theory to analyze the economic conditions of a country and the scope for public policy in the forms of monetary and fiscal policies.
Attendance to the course is expected to provide the students new competences and understanding on the following topics: 1. Main macroeconomic variables of a country (inflation rate, GDP, unemployment rate, public debt); 2. Microeconomic theories of the consumer and of the firm, market equilibrium in competitive and monopolistic markets; 3. Neoclassical and Keynesian macroeconomic theories on the effects of monetary and fiscal policies in a closed and in an open economy. In terms of analytic and critical assessment abilities, it is expected that the students will acquire the following: 1. Ability to critically assess and evaluate information regarding the Italian and international economic situation; 2. Ability to interpret the governmental decisions in political economy; 3. Ability to evaluate the impact of economic policies on the different economic agents (households, firms, public administration, government). At the end of the course, thus, the students should be well equipped to analyze the details of the functioning of an economic system, the market dynamics as well as the scope for public policy in the forms of monetary and fiscal policies. Students will also be able to apply modern macroeconomic theories to the interpretation of events of the recent international economic history.
Basic knowledge of maths and calculus.
Basic knowledge of math and calculus.
The course is divided into three parts: the first part is devoted to national accounts and the analysis of the economic system; the second one deals with basic microeconomics, and in particular consumer theory, firm behavior and market functioning (perfect competition and monopoly). The third part deals with macroeconomics and the open economy. The detailed syllabus is the following: First part. National Accounting: (10 hours) 1. Problems and definitions of political economy; 2. National accounts; 3. Modeling the economic system; Second part. Modern microeconomics: (40 hours) 4. The economic system and its functional operators: households (consumption, savings, and supply of labor); 5. The economic system and its functional operators: firms (production, investments, and demand for labour) 6. Market analysis: perfect competition and monopoly; Third part. Modern macroeconomics: (30 hours) 7. The financial market and the demand and supply of money; 8. From neoclassical microeconomics to the full employment macroeconomics: the labor market, the theories on the interest rates, the role of economic policy; 9. Unemployment in Keynesian macroeconomics: the IS-LM and AD-AS models 10. Open economy: the Balance of Payments, the internal and external equilibrium with fixed and flexible exchange rates.
The course is divided into three parts: the first part is devoted to national accounts and the analysis of the economic system; the second one deals with basic microeconomics, and in particular consumer theory, firm behavior and market functioning (perfect competition and monopoly). The third part deals with macroeconomics and the open economy. The detailed syllabus is the following: First part. Introduction to Economics and National Accounts: (10 hours) 1. Basic concepts, problems and definitions of Economics; 2. National accounts; 3. Modeling the economic system; Second part. Modern microeconomics: (30 hours) 4. The economic system and its functional operators: households (consumption, savings, and supply of labor); 5. The economic system and its functional operators: firms (production, investments, and demand for labour) 6. Market analysis: perfect competition and monopoly; Third part. Modern macroeconomics: (40 hours) 7. The financial market and the demand and supply of money; 8. From neoclassical microeconomics to the full employment macroeconomics: the labor market, the theories on the interest rates, the role of economic policy; 9. Unemployment in Keynesian macroeconomics: the IS-LM and AD-AS models 10. Open economy: the Balance of Payments, the internal and external equilibrium with fixed and flexible exchange rates.
The course is organized into lectures and exercise sessions. Moreover, real case phenomena and case studies will also be presented in class within the lectures.
The course is organized into lectures and exercise sessions. Exercises will be proposed at the end of each topic. The slides of the course and the exercises with solutions will be published on the portal. Real-world applications and case studies will also be presented during the lectures. Actual data on the Italian and international economies as well as examples of economic policies implemented in Italy, Europe as well as in other countries will be employed.
- Course slides - Besanko & Braeutigam: Microeconomics, 4th ed., 2011, Pearson - Blanchard: Macroeconomics, 6th ed., 2012, Prentice Hall
- Course slides - Besanko & Braeutigam: Microeconomics, 4th ed., 2011, Pearson (chapters 2-11) - Dornbusch, Fischer & Startz: Macroeconomics, 11th ed., 2011, Mc Graw Hill (Chapters 2, 5-7,9-15) The Besanko-Braeutigam textbook covers all topics dealt with the Microeconomics part; the Dornbusch-Fischer-Startz textbook covers the topics dealt with the Macroeconomics part. The texts are sufficient for a thorough preparation of the exam. Moreover, the course slides will be provided. To the ends of promoting an entire knowledge of the exam structure, the text and solutions to past exams from 2017 on will be provided.
Modalità di esame: Prova scritta (in aula);
- The exam is written, it lasts 2 hours and it consists of three questions. - It is permitted to use one calculator and writing material. - Paper will be provided. The consultation or use of any kind of material during the exam is strictly forbidden. - Any form of communication is strictly forbidden, as well as the use of any electronic device other than the calculator.
Exam: Written test;
The exam is written, it lasts 2 hours and it consists of three questions (one open macro-economic question, one micro-economics exercise and five true/false questions requiring mandatory motivation). It will cover the following topics: 1) National accounts and the market (Dornbusch-Fischer-Startz textbook chapter 2; Besanko-Braeutigam textbook chapter 2) 2) Micro-economic theories of the consumer (Besanko-Braeutigam textbook chapters 3,4,5), of the firm (Besanko-Braeutigam textbook chapters 6,7,8) and the market (9,10,11) 3) Neoclassical and Keynesian macroeconomics (Dornbusch-Fischer-Startz textbook chapters 5-7,9-15) The exam is intended to ascertain the knowledge of i) concepts and definitions characterizing an economic system; ii) the the understanding of firm and consumer theory and of the functioning of markets; iii) the main macroeconomic theories, iv) the ability to identify the effects of fiscal and monetary policies, v) the ability to apply modern macroeconomic theories to the interpretation of real-world macro-economic events and the decisions of monetary and fiscal authorities. The micro-economics exam will weigh 12/30 points, while the macroeconomics open question and the five true/false questions will weigh 9/30 points each. It is permitted to use a non-programmable calculator. Writing paper, including sketch paper, will be provided. The consultation or use of any kind of material (e.g., textbooks, lecture notes, slides) during the exam is strictly forbidden. Any form of communication is strictly forbidden, as well as the use of mobile phones, personal computers, tablets or any electronic device other than the calculator. The solutions to the exams will be published jointly with the results and with date of the inspection of the exams. No oral exam is foreseen.


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