Economics

This course covers the economic causes of environmental and resource problems. Economic theory is applied to environmental questions associated with resource exploitation; the problem of externalities and their management through various economic institutions, economic incentives and other instruments and policies. Means of analyzing the economic implications of environmental policy are also discussed as well as the valuation of environmental quality, assessment of environmental damages, and tools needed for the evaluation of projects such as cost-benefit analysis, and environmental impact assessments. Selected topics on international environmental issues will also be discussed.

This course introduces the theory of financial economics. The major topics of modern finance will be covered in a rigorous way but with no claim to generality. The course assumes standard knowledge of microeconomics, calculus, and probability theory. 

The first part of the course (Weeks 1-2) is a refresher on the basic economic concepts used throughout the course, such as expected utility, choice under uncertainty, or competitive equilibrium. The second part (Weeks 3-6) covers standard portfolio-choice problems and equilibrium asset-pricing models such as the mean-variance model, CARA-normal model and the CAPM. The third part (Week 7) studies a basic market microstructure model with asymmetric information (Glosten-Milgrom model).

Economics can make two possible contributions to our lives. First, it may help us better understand how the economy works, or how its inhabitants --- or “economic agents” --- behave. Second, more importantly from a practical point of view, it may help us find how to influence our economy by means of economic policy, to improve its functioning and thereby our economic welfare as well.

This course is aimed at grasping the link between the first and the second by examining some of the examples of “economic theory used in practice.” The course teaches what kind of economic policies are being implemented for what purposes, and the theoretical basis by which such policies may be justified. The course examines the usefulness of economics, but we will also see its limitations. Knowing the latter is important, because many policies are often advocated without fully disclosing (or even worse, by proponents who cannot, or refuse to, see) their weaknesses or possible side effects.
 

The first part of this course (Week 1-7) covers a broad range of economics, both macro and micro, to give the students an overview of different economic theories and policies. The second part (Week 8-14) builds on the first part of the course and looks at the theory and practice of international economics, including trade policy, how economies relate to one another, and the latest issues in globalization.

This is a multidisciplinary course on the economic, political, and social aspects of Asia-Japan relations. It covers both theoretical and practical aspects, such as economic policies; Japan's corporate strategies, and financial markets.
 

Each session is composed of two parts. The first part is based on the latest text written by Japanese scholars. The second part addresses related topics based on comprehensive texts written by Asian and Western scholars. Students are expected to write short comments after each class.  The course will feature Asian policy makers and academics as occasional guest speakers.

The course provides an introduction into monetary and financial history from the 18th century to the present day. It examines the main developments in international monetary architecture and the global financial system since the Glorious Revolution. The course introduces students to major concepts of money and finance (financial development, financial integration, monetary policy, banking crises etc.) and to provide a long run perspective to the current policy debate.

This course examines the functioning of democracies in a context of high economic interdependence. To do so, the course is structure into two parts. In the first part, students learn how to define and measure globalization; how institutions emerge and change and how political institutions have contributed to the development of globalization. In the second part of the course, the focus is on analyzing the relationship between democracy and globalization. In this part of the course, the main topics cover the relationship between globalization and political accountability; the surge of technocracy and the tension with the democratic ideal of self government, and the socio-economic consequences of globalization. These topics provide the basis to understand more complex problems like Brexit, the collapse of establishment parties or the rise of populism. 

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.

This course introduces students to: (I) the measurement and structure of the national economy; (II) basic macroeconomic concepts (e.g., productivity, output & employment, consumption, saving & investment, long-run economic growth, and business cycles), and (III) a basic framework for macroeconomic analysis.

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.

At the end of class, students are expected to have

1) solid foundation in economic theory

2) mathematical and quantitative skills to the analysis of the different tasks of central banking.

The course will emphasize

1) Ability to apply economic concepts to explain real-world phenomena;

2) Understanding of institutions and policies;

The monetary policy decisions of central banks around the world are seen as crucial in global financial markets. In major economies, such as the US, Japan, the EU, and others, central banks focus on setting short-term interest rates. Their decisions to adjust interest rates have enormous and closely watched impacts on stock markets, bond markets, and banking markets. The first part of this course will focus on understanding how central banks use their powers, the macroeconomic theory that underlies the decision making of central banks and their effect on the economy and financial markets.

Though standard economic theory may imagine financial markets as operating according to rules of competitive supply and demand, in fact, distinct financial intermediaries such as banks are essential for the smooth operation of markets. In the second half of the class, we will focus on the economics and institutions of banking. ​​​​​​​