Course Syllabus
Comparative Economics: Global Risks and European Responses |
 |
| Semester & Location: |
Summer 2020- DIS Stockholm |
| Type & Credits: |
Core Course- 3 credits |
| Core Course Study Tours: |
Athens, Greece |
| Major Disciplines: |
Economics, Finance, and Political Science |
| Prerequisite(s): |
One course in intermediate or advanced microeconomics at university level |
| Faculty Members: |
Jim Breen |
| Program Director: |
Susanne Goul Hovmand- sgh@dis.dk |
| Time & Place: |
TBA |
Description of Course
Markets generate wealth, but there are no guarantees of how. On the international stage, the volatility of markets contributes to many of the key global challenges of our time: climate change, widening inequality, unprecedented waves of migration, financial crises, and increasing unemployment in the wake of digitalisation, automation, and A.I. In this course, we consider how responses to these challenges differ between Europe and the U.S.
Clearly the economic approach in Europe is different from that in the US, but how exactly is this manifest? In particular we look at the how systems in the US and Europe differ in terms of their approach to the nature and extent of public interventions in the marketplace, privatization, and central banking systems. We then consider how the different systems have responded to financial crises in the past, and importantly the prospects for better and faster recovery in the future.
Learning Objectives
By the end of this course students will...
- Understand where markets work and where they don’t, with a special look at the case for public provision of goods vs. private provision.
- Be conversant with economic theories of positive and negative externalities.
- Develop a working understanding of monetary and financial policy in Europe, how EU central banking is unique, and the challenges this presents to the European Union.
- Be able to identify common themes in financial crises and the various approaches to their remediation.
- Appreciate the economic challenges currently being faced in Europe.
- Better understand current discussions relating to both government and private debt in the US and Europe.
Faculty
Jim Breen has been a professional economist working with the UN, governments, private companies, and social organisations for a number of years across Europe and Africa. He completed his undergraduate studies at the University of California (Santa Cruz and Berkeley) and his postgraduate work at the London School of Economics.
Readings
- Anechiarico, F. et al. (2017) ”Swedish Nursing Home Scandal 2011” in Legal but Corrupt: A New Perspective on Public Ethics. London: Lexington Books. pages 36 - 43
- Dahlgren, G. (2014) Why Public Health Service? International Journal of Health Services, Volume 44, Number 3. pages 507–524
- Goodman, J. and Loveman, G. (Nov – Dec 1991) “Does Privatization Serve the Public Interest?” Harvard Business Review
- Jonning, L. (2009). "The Swedish Model for Resolving the Banking Crisis of 1991-93: Seven reasons why it was successful." European Commission, Directorate General for Economic and Financial Affairs Economic Paper 360
- Roberts, D. (2012, September 24) ”Discount rates: A boring thing you should know about (with otters!)”. Grist
- Rubin, R and Hughes, S. (2017, December 2) Senate Passes Sweeping Revision of U.S. Tax Code. Wall Street Journal
- Tavlas, G. ( 1993) "The New Theory of Optimum Currency Areas" in World Economy: Basil Blackwell Ltd. pages 663 - 677
- Taylor, J. (2006) Nordhaus vs. Stern. Cato Institute. Cato at Liberty.
Additional readings TBA
Field Studies
Examples of Field Studies: a visit the Chief Economist for the Confederation of Swedish Manufacturers, the organisation responsible for the sector's participation in collective bargaining at a national level and for advising manufacturers on how to plan strategically for the future. firms; a visit to the Swedish National (Central) Bank to discuss the implications of current trends in the EU and the Euro on Sweden. Specific Field Studies tbc.
Study Tours
The Short Study Tour takes us 90 miles north of the Arctic Circle to Kiruna, a city being moved 2 miles to the east by the national government in order to accommodate the local mine. There we will test what we have learned about private versus public production more than 1700 feet underground in the LKAB iron ore facility while considering the positive and negative externalities of the industry.
During the Long Study Tour we travel to Athens to learn first hand about the different causes and implications of the Greek financial crisis. We see what happens when a country loses 30% of its GDP in the space of a few years and hear from local and European Union experts about different ways to help the country recover.
Approach to Teaching
The teaching approach is to use established economic thinking and approaches to examine day to day issues that affect and will continue to affect you. A significant aim of this course is to leave you with a template for problem solving, applicable to many aspects of modern day living.
Expectations of the Students
Students will be expected to actively participate in ‘telling stories’ of how the theoretical models are expected to play out in real life. Each will support and enhance the learning of their fellows in class. Students shall come prepared with their own views and opinions to each session, and at times will be required to work in groups. Each student will be responsible for a presentation to the class.
Active engagement in classroom discussion is a key prerequisite to a good grade in this course.
Note on Attendance:
Class participation is a key aspect of our learning process. As such, any (and each) absence will result in a reduction of your class participation grade by 7.5%. If you have an ongoing medical issue resulting in more than one absence, please speak with your instructor.
Evaluation
In this class you will be evaluated on how well you can assimilate the tools and ideas presented and then use them to interpret the world around us. To that end it will be essential for you to learn material prior to class. This will enable us to use as much classroom time as possible, not for the acquisition of theory, but rather for using ideas and concepts to analyse and understand contemporary issues.
As part of that process, there will generally be quizzes set prior to class.
Grading
| Assignment |
Percent |
| Class Participation |
20% |
|
Pre-Class Quizzes |
20% |
|
Pre Core Course Week and/or Study Tour Presentations |
10% |
|
Midterm Examination |
15% |
|
Policy Presentation |
15% |
|
Final Examination |
20% |
Class Participation:
This component covers active participation in class, performance in small assignments, feedback and questions on fellow students’ presentations (see #3 and #5 below). Participation is not to be confused with mere attendance during the semester.
Pre-Class Quizzes:
Most classes will be preceded by a quiz covering the assigned reading/viewing/listening. The quizzes are published on Canvas with their due dates and times.
Pre Core Course Week and/or Study Tour Presentations:
Students will make presentations on organizations and or places we will visit. The purpose of the presentation is to prepare your colleagues for the visit as well as to provide some insight into the types of things we should consider or ask about while there.
Mid-Term Examination:
There will be a midterm exam with questions on the lectures, student presentations, videos, and readings from the first half of the term. Any material covered in prior to the test is fair game for the exam. It is a closed-book exam that will last 1 hour.
Policy Presentation:
Students will make an individual, 5 minute presentation on a project or policy they would like to implement in either Sweden or the US. The presentation will be followed by a 5 minute Q&A session. The presentation will outline the objectives of the policy, its underlying assumptions, and its theoretical underpinning as it relates to course material.
Final Examination:
This exam is similar to the mid-term exam, but covers all material from the entire course. Any material covered in any lecture is fair game for the exam. It is a closed-book exam that will last 1 hour.
Note on Use of Electronic Devices in the Classroom:
Aside from exams, which are in Canvas and must be completed on laptops, computers will only occasionally be used. The use of other electronic devices such as mobile phones is prohibited. Students found using electronic devices for purposes other than intended for the class will receive an “F” for their participation grade. There are 168 hours in any given week: this course will take up only 2.5 of them in class time.
Class Sessions:
Class Sessions 1 - 6
- The case for markets
- Pareto optimality and the First and Second Fundamental Theorems of Welfare Economics
- Public Goods and Externalities
- Privatisation
Class Sessions 7 - 12
- Optimal Currency Area Theories
- The European Central Bank: Structure, Policies, and Practice
- Case Study: Causes and Implications of the Greek Financial Crisis
- The Crisis in the Euro: 2008 - The Present Day
Class Sessions 13 - 18
- Sweden and Financial Crises 1991-93, 2008-09
- Common Elements of Financial Crisis
- Debt, Deficits, and Prospects for the Future
N.B.: Session topics outlined may be subject to change.
Academic Regulations
Please make sure to read the Academic Regulations on the DIS website. There you will find regulations on:
DIS - Study Abroad in Scandinavia - www.DISabroad.org
Course Summary:
| Date | Details | Due |
|---|---|---|