00256 - Economics (D-L)

Learning outcomes

At the end of the course, students will be able to master the basis of both Micro and Macroeconomics, with particular reference to market behaviour of firms, consumers and workers on one side, and to the most relevant issues of Public Economics at the different levels of governance, on the other. Moreover, they will gain a good knowledge of the terminology and most important problems of Economics, as well as of technical terms and of the methods employed by the economic analysis of main problems.

Course contents

In general terms, the course covers the following topics:

A) The Market: Definition - Historical overview about the origins and development of market societies di mercato - Market and non-market goods - Interdependence - Uncertainty

B) MICROECONOMICS

Production and Cost Theory: the inputs of the production process; causes behind productivity; economies & diseconomies of scale; short- and long-run costs; producer's equilibrium; genesis of supply curve; the firm and its modern developments.

Consumer Theory: consumer's equilibrium; consumer's choice theory (normative & descriptive); in particular: cognitivist approach; roile of advertising.

Demand Theory: the demand curve; elasticity; index-numbers of citizen's well-being.

Firm Theory: market equilibrium& disequilibrium; perfect competition; monopoly; natural monopoly; monopolistic competition; oligopoly; anti-trust law.

Market Failures: public goods; common goods; externalities; Coase's Theorem; information asymmetry; adverse selection; experience goods.

The Market and the State: the role of the State in the economy; the Welfare State; liberalization; privatization; regulation & de-regulation.

C) MACROECONOMICS

Basic Notions of National Accounting: Gross Domestic Product: definition & components; how GDP is calculated (the Value Added Method); Gross National Product; National Income; Aggregate Expenditure.

Macroeconomic equilibrium and the Full Employment Concept: Neo-Classical and Keynesian approaches; Public Expenditure; The Multiplier Relationship.

State Budget and the Debate over the Public Debt: the State Budget; deficit and debt; consequences of excessive Public Debt; how to limit the Public Debt; the Maastricht Agreement

Money and Banking : money (definition and historic development); the stock of money ; banks (origins, development, current features); commercial & merchant banks; the Central Bank; monetary policy; gold (past and present).

Inflation: hyper-inflation; theories of modern inflation.

The Labour Market: basic statistical definitions; unemployement (theories and policies); flexibility in the Labour Market.

Foreign Trade: Ricardo's principle of Comparative Advantages; the balance of payments; protectionism; terms of trade; depreciation and devaluation; The European Union.

The Distribution of Income. Economic Justice.

Financial Crises: the Stock Exchange; speculative bubbles and how they grow and explode; the 2007-2009 international Crisis; the 2011-12 crisis; Austerity;  update

Readings/Bibliography

The following text contains the whole of the issues covered by the program:

Fabio Nuti Giovanetti

CONTROCORSO DI ECONOMIA POLITICA

Cedam-Bonomo, 2017

This text is available in all formats from all bookshops or through the sith of Bonomo Publishers.

Any other text covering the same material, also in different languages, can be allowed, via approval of the teacher.

Teaching methods

Lectures, with the aid of slides, short videos and other media

Assessment methods

The examination is made up of two parts: (a) a written test about Microeconomics, and (b) an oral one, about Macro. The written test is generally composed of both multiple choice and open questions. The scores obtained in the written test are communicated via AlmaEsami. The oral exam is expected to be taken within one academic year - i.e., 3 whole sessions - from the written one: e.g., if the written test is succesfully taken in June, the oral exam will have to be completed by the end of that year's winter session). In order to be admitted to the oral part of the exam, students are supposed to get al least a score of 15/30. Candidates are required to enlist through AlmaEsami before the deadline. Failing to do so will result in the inability to take the test. Whenever a problem arises, students are invited to contact the teacher timely via e-mail.

Those who, having enlisted for a written or an oral exam, will fail to show up and will not timely cancel their name from the list, will not be allowed to take the test that will follow.

Teaching tools

Slides available at AMSCampus

Office hours

See the website of Fabio Nuti Giovanetti