University of Commerce Luigi Bocconi

This course is an introduction to labor economics. The course objective is to understand how labor markets operate and how they are affected by institutions and labor market policies. Both empirical evidence and standard theory are covered. The course highlights the effects on efficiency and the redistributive properties of institutions operating in imperfect labor markets, subject to market failures. This provides three reasons for the existence of institutions: i) remedying market failures, ii) achieving some redistribution, and iii) remedying potential negative side effects of other institutions. The course consists of 14 key lectures. The first lecture set up the stage by introducing workers’ labor supply, firms' labor demand, the labor market equilibrium and the institutional wedges. Lecture 2 through 14 deal with specific institutions and have the same setup: a description of the institution, some cross-country comparisons, theory in perfect and imperfect labor markets, empirical evidence on the effects of this institution, interactions with other institutions, and policy issues. The four lecture topics are: overview; minimum wages; unions and collective bargaining; antidiscrimination legislation; regulation of working hours; early retirement plans; family policies; education and training; migration policies; employment protection legislation; regulations on self-employment; unemployment benefits and active labor market policies; health related labor policies; and payroll taxes.

The course develops students’ skills in understanding, analyzing, and interpreting financial statements. Conceptually, the course emphasizes that producers and users of financial statements have different objectives and informational needs. At the same time, the course is applied in that it teaches students how to analyze actual financial statements data to make informed business decisions and assessments. The course is designed to broaden and deepen students’ conceptual and technical understanding of accounting as it is used for management purposes. The emphasis in the course is on financial controls, which provides the dominant form of control in the vast majority of decentralized organizations. This module provides support in business decisions, evaluation of organizational performance, or in evaluation of others (and/or be evaluated) through the use of financial and non-financial information. Course topics include understanding financial statements; fundamental analysis; growth strategy and financial tensions: the logic behind target setting; market based measures, ESG, and integrated reporting; management and control; financial responsibility; incentive systems; remedy to the myopia problem; and uncontrollable factors.

The aim of the course is twofold. First, the course provides a toolkit to identify, model, and reason through strategic interactions (such as business strategies, negotiations, etc.) and discusses how to apply this toolkit when designing strategic environments (such as auctions, competitions, teamwork, etc.). Second, and in the interdisciplinary spirit of the program, the course illustrates the ability of mathematics in modeling, analyzing, and understanding real-world social as well as business interactions. Course topics include: what is Game Theory, static and multistage games of complete and incomplete information, signaling and repeated games, mechanism design, Bayesian and dominant-strategy incentive compatibility, efficient mechanisms, auctions, and applications of the theory. Prerequisites: Ability to complete rigorous mathematical proofs.

This provides students with an understanding of the nature and structure of the disclosures that an acquirer must make when proposing a merger with a target. Particular attention is paid to data that is useful for valuation purposes when trying to appraise a target with a view to developing a target identification methodology. Course topics include the anatomy of a typical merger – mini case study; overview of Mergers Analysis – methods to identify prospective targets using financial statements; brief outline of US and European financial reporting requirements; required filings to raising finance to publicly fund transactions; obtaining a purchase price and creating a Pro Forma Valuation; special topic on fair values, goodwill, and intangibles valuation; applied examples; constructing projections including accretion and dilution; and ex-post analysis of deals. Prerequisites for the course: introductory level accounting.

This course gives students the opportunity to improve their ability to build and manage constructive relationships and to get to high value added results managing not only their own, but also other people's performance. The determinants of optimal performance, that is competence, motivation, and positive psychological states, are explored with the aim of both improving the ability to engage oneself and the people they are working with, and the effectiveness when managing problem/underperforming people. Leadership skills gives students the opportunity to reflect and act upon change: change is one of the relevant dimensions of leadership and becoming a leader requires students to go through a personal and professional transition. This course provides the resources needed to specifically manage the transition from Individual Contributor to Manager, encouraging a greater self-awareness and therefore increased effectiveness. This course covers the main theories of leadership: trait, situational approach, transactional, transformational and charismatic leadership; the dark side of leadership. It also covers leadership skills: influence, integration of differences, compelling communication, leading for excellent performance. Other topics covered include: designing and leading teams; minorities, women, and leadership; organizational culture and leadership in multicultural environments. Prerequisites: Basic knowledge of organizational behavior.

This course deals with psychological phenomena, biases, and socially-oriented behavior that affect economically relevant decisions of people. The main focus is on what economists have learned from various experiments, as well as the methodology of answering questions by the means of an experiment. In order to understand better the motivation and contribution of experimental works, the course reviews the structure and predictions of standard models in Microeconomics and discusses the ways in which they are modified or extended to incorporate psychological theory and empirical findings. Students who have preparation in Calculus, Statistics, Econometrics, and Intermediate Microeconomics benefit from the course the most. Lack of background knowledge in one of these disciplines increases the amount of work that students need to do to keep up with their peers.

International Economics dominates the public debate. Has globalization helped or hurt the citizens of developed and emerging nations? What will be the consequences of Brexit for Great Britain and for the EU? Will there be a “trade war” between the United States and China, and what would its consequences be? Is the Euro-Dollar exchange rate too low or too high, and what should the European Central Bank do about it? Getting the answers right is important for policymakers, for economic experts in government and in the private sector, and also for any interested citizen. International Economics gives no ready-made answers to these questions, but it gives us important tools to think about them. The course aims to give students an overview of this framework and show them how it can help us to better understand the world we live in. The course discusses topics including the world economy since the Industrial Revolution; the theory of comparative advantage; the role of resources for trade; the effects of trade and migration on the income distribution; economies of scale and trade; exporters, multinational firms, and offshoring; trade policy; the balance of payments and the true meaning of trade deficits; exchange rates; international capital flows and international financial crises. In order to successfully follow this course, students should be familiar with basic microeconomic concepts such as budget sets, indifference curves, consumer and producer surplus, and marginal cost. They should also be at ease with simple mathematical tools such as derivatives and solution methods for linear equation systems.

The course provides a basic understanding of the probabilistic models and techniques underlying the most widely used classes of stochastic processes. The main focus is on modeling aspects, which are completed by a description of some popular algorithms for simulation. Mathematical concepts are integrated with real-world applications and examples and illustrated through simulations. At the end of the course, students will have bridged the gap between their elementary probability skills and the knowledge required to understand and use basic models based on stochastic processes. The course discusses topics including conditional probabilities and conditional expectations; introduction to stochastic processes and Markov chains; discrete-time Markov chains: Chapman-Kolmogorov equation, Classification of states, Limiting properties, and Applications (e.g. stochastic models, sequential testing, and website ranking); introduction to Stochastic Simulation, Simulation techniques, and Monte Carlo methods; Markov Chain Monte Carlo algorithms, and Computational applications; counting processes and the Poisson process, Continuous-time stochastic processes, and examples and modeling applications. The course requires students to have solid knowledge of calculus and basic probability theory (e.g. probability distributions and random variables) as a prerequisite. Some knowledge of basic programming tools (such as R) is also required.

Economic policies differ widely across countries and – within the same country – even over time. Among OECD countries, government expenditure ranges from less than 40% in the US to almost 60% in Finland. What explains these large differences? The many tools provided by economic theory generally fail to offer a complete and satisfactory answer to this question. The course mission is to analyze the determinants of economic policy in modern democracies and to show how these policies may differ according to the different political institutions in place. The course consists of four parts. The first part of the course discusses the tools of political economics. The second part of the course compares the welfare states across industrialized countries, with special emphasis on the pension systems and the labor market, and discusses the political feasibility of structural reforms. It also addresses the differences in economic policies that may arise from the political institutions, with particular emphasis on the analysis of the electoral rule and of the regime type. The third part analyzes dynamic policies – public debt, economic growth – in a political economy framework to understand how political incentives shape current and future policies. The last part addresses the debate between the role of culture and institutions in shaping economic growth. To feel comfortable in this course, students should be familiar with the optimization techniques learned in math and microeconomic courses.

The course builds on the concepts of macroeconomics in an open economy to discuss the determinants of exchange rates and the consequences of exchange rate policies for output and prices in the short and long run. A brief history of the international monetary system also explains the establishment of the single European currency. Basic elements of European central banking are discussed and specific issues are dealt in more depth, mainly relating to recent monetary developments including the global financial crisis. The content of the course includes the following: the balance of payments and the foreign exchange market; a simple theory of exchange rate determination, in the short and in the long run; fixed exchange rates and foreign exchange intervention; monetary and fiscal policies with different exchange rate regimes; from Bretton Woods to the Euro: theory and experience of optimal currency areas; monetary institutions and strategies in the Euro area; the international financial crisis: monetary policies and financial stability; the coming future of the international monetary system: the dollar problem, the role of the euro, and the emerging importance of China's money and finance.