Public Economics

Numbering Code U-ENG23 33524 LE73 Year/Term 2021 ・ First semester
Number of Credits 2 Course Type Lecture
Target Year Target Student
Language English Day/Period Thu.1
Instructor name MATSUSHIMA KAKUYA (Graduate School of Engineering Associate Professor)
YOKOMATSU MUNETA (Disaster Prevention Research Institute Associate Professor)
Outline and Purpose of the Course The purpose of this lecture is to understand the basic concept of micro economics to evaluate infrastructure projects. For the sake of this purpose, the detailed concept of micro economics is explained including the function of the market, the behaviour of firms and consumers, and the methodology to evaluate the social welfare is explained. The concept of market failure and policies to conquer it are also explained. Finally, cost benefit analysis which is wildy used to evaluate the efficiency of infrastracture is explained with economical aspects of infrastructure.
Course Goals To understand the basic concept of micro economics for project evaluation of infrastructure
Schedule and Contents Introduction,1time,The outline of this course, the role of public
Consumers' behaviour,2times,Consumers' behaviour model (the preference of household, utility, utility maximisation behaviour, demand function, compensated demabd function, Slutsky equation, aggregated demand fuction, welfare measures and their feature )
Exercise (1),1time,Exercise related to above three lectures
Firms' behaviour,2times,Firms' behaviour (technology, production function, profit maximisation behavior, cost minimisation behaviour, cost function and supply function, market structure and firms' behaviour)
Exercise (2),1time,Exercise related to above three lectures
Perfect Comititive Market,1time,Perfect competitive market, the difference between general equiribrium and partial equiribrium, Pareto effciency
Imperfect Competition,1time,Monopolistic Market, Oligopoly Market
Measurement for Economic Evaluation,1time,Consumers' surplus, Producers' surplus, social surplus, equivalent variation, compensating variation
Externality,1time,The concept of externalities, its mechanism and variation, policy to internalise externalities
Public Goods,1time,The feature of public goods, Samuelson condition
Exercise (3),1time,Exercise related to above three lectures
Cost Benefit Analysis,1time,The concept of cost and benefit, social discount rate, evaluation index, cost benefit analysis and financial analysis, quantification of the benefit, the way of pjofect evaluation from the viewpoint of engineers' ethic
Evaluation Methods and Policy Final Exam: 70-80%, Reports during classes: 20-30%
Course Requirements Students are supposed to have earned a credit for "Systems Analysis and Exercises for Planning and Management"
Study outside of Class (preparation and review) It is advisable to read the corresponding parts of the textbook in advance.
Textbooks Textbooks/References Hal R. Varian: Intermediate Microeconomics : A Modern Approach, seventh Edition, W. W. Norton & Company, 2014 isbn{}{9780393919677}
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