Economics

Public Economics is about how the public sectors that represent ‘the State’ promote the public interest. This course is situated in the context of democratic countries that rely mostly on free markets. It deals with practical or real-life aspects of public economics in confrontation with micro- and macro-economic theory. Over time, economic theories and models have become more specific and rigorous whereas social, political, and economic reality has become more multifaceted. The passing of time brings complexity to the world, both for the private market and that of the public sector. Part of this growing real-life complexity is due to the more ambitious role that governments tried to play since the last century, while part is due to choices made by governments themselves. Complexity has increased opportunities for abuses, rent-seeking, and for mistakes in policies. This complex reality with its ‘wicked problems’ makes it much more difficult for governments to (a) allocate resources, (b) redistribute income, (c) protect some incomes and influence, in various ways, the level of production, employment, prices, and economic activity appropriately to the economic theoretical standards. The goal of this course is to engage in this complex issue from the perspective of public economics, and from there to design a public finance solution to some wicked problem. Entry Requirements include courses in Micro or Macro Economics and Statistics.

This course primarily focuses on economic analysis in terms of welfare. Topics include how to evaluate market allocations based on efficiency, how to achieve efficient allocations through the market, and when the market fails in achieving efficient allocations.  

Students will study market structures besides the competitive market such as standard monopoly (uniform pricing), monopoly behavior (price discrimination) and oligopoly (basic concepts in game theory are also covered).  

Additionally, the course will consider exchange, production, welfare, social choice (e.g., an investigation of voting rules), and externalities (If time allows).  

This course emphasizes the development of microeconomic models to analyze economic decision-making of agents and provides students with the basic toolkit of microeconomic theory in preparation for advanced further coursework.  

Prerequisites: Principles of Microeconomics, Basic calculus 

The extensive independent study field research paper produced by the student is both the centerpiece of the intern's professional engagement and the culmination of the academic achievements of the semester. During the preparatory session, IFE teaches the methodological guidelines and principles to which students are expected to adhere in the development of their written research. Students work individually with a research advisor from their field. The first task is to identify a topic, following guidelines established by IFE for research topic choice. The subject must be tied in a useful and complementary way to the student-intern's responsibilities, as well as to the core concerns of the host organization. The research question should be designed to draw as much as possible on resources available to the intern via the internship (data, documents, interviews, observations, seminars and the like). Students begin to focus on this project after the first 2-3 weeks on the internship. Each internship agreement signed with an organization makes explicit mention of this program requirement, and this is the culminating element of their semester. Once the topic is identified, students meet individually, as regularly as they wish, with their IFE research advisor to generate a research question from the topic, develop an outline, identify sources and research methods, and discuss drafts submitted by the student. The research advisor also helps students prepare for the oral defense of their work which takes place a month before the end of the program and the due date of the paper. The purpose of this exercise is to help students evaluate their progress and diagnose the weak points in their outline and arguments. Rather than an extraneous burden added to the intern's other duties, the field research project grows out of the internship through a useful and rewarding synergy of internship and research. The Field Study and Internship model results in well-trained student-interns fully engaged in mission-driven internships in their field, while exploring a critical problem guided by an experienced research advisor.

This course explores the complex interactions between international politics and the global economy, encompassing subjects ranging from geopolitics, security, climate change, global financial systems, and the impact of technology on international trade. 

Students will examine the evolving dynamics of international political economies to navigate the complexities of global economic policymaking process, through a thorough engagement with current case studies to understand the impact of economic decisions on global political structures and vice versa. 

This course examines how to decide where to invest, and how much risk to take on. It covers optimal portfolio construction (Markowitz portfolio theory and Capital Asset Pricing Model (CAPM), how to measure and price risk and exploit mispriced securities, investment strategies, performance evaluation, and bonds and their investment characteristics (such as duration, yield, and term structure). 

This course explores the significant achievements of behavioral economics, focusing on theoretical and empirical evidence. Unlike traditional economics, which assumes human rationality and standard preferences to understand decision-making and behavioral changes, behavioral economics expands human decision-making models based on new insights from psychology and other fields and introduces the concept of policy design and evaluation based upon insights into human behavioral change. Students will gain a thorough understanding of the fundamental concepts of behavioral economics; be able to critically evaluate the traditional economic theories on human rationality; and be able to compare and analyze the usefulness and policy implications of behavioral economics with those of traditional economics. 

Prerequisites: Microeconomics, Basic Calculus 

What is the optimal consumption choice for a consumer given her preferences and income? When will a manager of a firm decide to expand production? What are the costs for the government when it supports the farmers with a per unit subsidy and is such a subsidy socially efficient?  Should monopolies be regulated and if so, how? When does it make sense for a firm to introduce a variable-wage payment scheme? Which attitudes to risk exist and how does this influence behavior? Such questions are treated in this course. The course is specially designed for non-economics students. Assumed previous knowledge: Students are expected to have a good command of secondary school calculus (including simple derivatives).

Tracing the history of beer from China in 7000 BCE, through to the impact of US federal law and European Union regulations, this course explores the determinants and drivers of the economics of beer. It includes an examination of the labor market and brewing, technology and innovation, national beer market trends, media and marketing of beer, new and emerging beer markets, cultural and political factors impacting the beer market, and the decline and rise of local, import, and craft beers.

This course explores the transformative role of new information technologies (IT) and artificial intelligence (AI) in reshaping businesses. Its goal is to equip students with an in-depth understanding of essential economic principles that are crucial for operating and excelling in IT-enabled and/or AI-driven enterprises, while also highlighting the economic ramifications of IT and AI at various levels - including individual firms, broader markets, and society as a whole.  

Students will delve into competitive market analysis and examine IT-specific economic challenges related to pricing, bundling, information asymmetry, and uncertainty. In addition, the module covers AI-centric topics such as automated decision-making and the broader economic effects of AI technologies. Key economic issues associated with IT (such as competitive markets, pricing strategies, and bundling) and foundational concepts like user lock-in, switching costs, and the network effect are discussed. Participants also gain insights into the workings of AI-enabled businesses and address AI-specific economic concerns, including automated decisions, algorithmic bias, and the influence of AI technologies on the job market. 

This course covers processes and theories of government taxation, examining two traditional roles of government in relation to market mechanisms: the provision of public goods and services, and the provision of social insurance and income redistribution. 

This course is not only about theoretical analysis of the abstract expenditure programs, but also about specific institutions and policy debates in Korean context. 

First and second year levels of microeconomics are prerequisite. It is also recommended that students are equipped with mathematical skills related to economics. 

Some of the supplementary materials are written in Korean, thus some Korean language familiarity is recommended; although the materials will be explained in English, some of the terminologies cannot be translated.