15824 - Economic Assessment of Projects

Learning outcomes

At the end of the course, the student will know the principles and techniques of economic analysis aimed at completing training in architecture and town planning. In particular, the student will be able to understand and apply: - the principles of economics; - the fundamentals of the discipline and estimation procedures; - the evaluation techniques useful for expressing judgments of feasibility and viability.

Course contents

This course supplements the architect's curriculum by aligning the design skills developed by students with the needs and requests expressed by either public or private customers, and by considering cost and price systems.

The purpose above is to encourage students' awareness that architectural and town planning projects are conceived, defined, and implemented within the framework of complex economic relations characterizing the real estate and construction markets. Students are also introduced to the essential methodological tools for addressing problems related to project feasibility (compared to alternative investments) or viability (concerning spending power).

The first series of lectures focuses on microeconomics, a branch of economics that examines how the behavior of producers and consumers contributes to price determination. The second series of lectures introduces students to the criteria and processes used to appraise existing housing or housing affected by production processes. Specific topics include appraisal techniques within the market, cost, and income approaches. The third series of lectures focuses on economic project evaluation techniques. Specific topics include life-cycle cost analysis and discounted cash flow analysis.

Readings/Bibliography

Recommended readings

Copiello S. (2011), Progetti urbani in partenariato. Studi di Fattibilità e Piano economico finanziario, Alinea, Firenze.

Realfonzo A. (1994), Teoria e metodo dell'estimo urbano, Nis, Roma.

Suggested readings

Aa. Vv. (1995), Manuale di progettazione edilizia, vol VI, Hoepli, Milano.

Delbono F., Zamagni F. (1997), Microeconomia, Il Mulino, Bologna.

Teaching methods

Lectures on the listed topics. Students will be supervised during exercises/coursework.

Assessment methods

The exam is meant to verify the knowledge of the topics through two written tests, one at the midpoint of the course and one at the end. The maximum time available for each test is equal to 90 minutes. The tests include both open-answer and/or multiple-choice theoretical questions and exercises. For each question, a variable score is assigned, depending on the calculations to be carried out. The maximum score for each test is equal to 22; therefore, the maximum overall score is 44. A minimum overall score of 16 is required to pass the exam (grade 18/30). For every two points obtained, in addition to the minimum score, an extra grade (1/30) is awarded. Therefore, the maximum grade obtainable by providing all correct and complete answers is equal to 30 cum laude. Tools such as calculators, dictionaries, and lecture slides are permitted during the exams.

AI can be a useful tool to support individual study with in-depth analysis, summaries, and self-assessment. Regarding learning assessments, the use of AI is prohibited during the in-person exam. Any use constitutes a violation of academic integrity.

Teaching tools

Digital and multimedia tools: presentations produced by the teacher and distributed before class, applications on digital platforms for interactive assessment of learning level.

Office hours

See the website of Sergio Copiello