Course Syllabus

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  Syllabus - Spring 2022

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Semester & Location:

Spring 2022 - DIS Stockholm
Type & Credits:

Core Course - 3 credits
Core Course Study Tours:

Sweden & Athens
Major Disciplines:

Economics, Finance, and Political Science
Prerequisite:

One course in intermediate or advanced microeconomics at university level.
Faculty Members:

Kathleen Burke - kathleen.burke@phdstudent.hhs.se

Fairouz Hussien - fairouz.hussien@phdstudent.hhs.se

Stylianos Papaioannou - stylianos@disstockholm.se

Joseph Monroe - joseph.monroe@phdstudent.hhs.se

Overall questions about the course, including the syllabus, exams and assignments, should be directed towards Joseph.
Program Director:

Susanne Goul Hovmand - sgh@dis.dk 
Academic Coordinator:

academics@disstockholm.se 
Time & Place:

Mondays and Thursdays 14.50-16.10, 1D-508


Course Description

Our global economic system generates astounding wealth and unprecedented individual freedom. It also creates many problems, including inequality, financial instability, and massive environmental destruction. There are good reasons to propose changes to our economic system. 

Yet, not all proposed changes are beneficial. Economic policies often have counterproductive effects. Every course of action—every government policy and regulation—has risks and tradeoffs. If we do not have any sense of these tradeoffs, as well as opportunity costs of alternate policies, we act blindly. We face a dual challenge: How to maintain the benefits of capitalism – marked by technological innovation and economic growth – while limiting the many undesirable side-effects. To solve social problems, it is necessary to find beneficial changes to our economic system.

To find which changes are beneficial, we compare possible economic systems. As noted by economist Thomas Sowell, economics is the study of the allocation of scarce resources which have alternative uses. An economic system processes information about resources and decides how to use them. To compare economic systems is to compare ways to process information and make decisions. This comparison is the study of comparative economics. In comparative economics, we compare economic systems, policies and strategies. We compare across history, in counterfactual thought experiments, and at different levels of analysis (e.g. regional economies, national economies,  industries, and markets). We may ask:

  • What possible economic systems have existed before and what possible systems could exist in the future? 
  • How do different economic systems process information and make decisions? 
  • Why do economic systems function differently?
  • Are economic policies likely to achieve desired effects or counterproductive effects?
  • To whom are particular changes beneficial (or harmful)?

In this course, we will compare a selection of western economies. We will study fiscal and monetary policy, different types of economic systems (Capitalist and Socialist), the welfare state, and the adoption of a common European currency. In particular, we will compare the effect of the 2008 financial crisis on Sweden and Greece. Sweden fared the crisis well, while Greece plunged into a fierce and protracted economic contraction. In this course, you will develop the ability to compare economic policy, industrial structure, resource management strategies. You will further develop the ability to propose beneficial policy alternatives to foster economic resilience and sustainability.

Learning Objectives

By the end of this course, students are expected to understand:

  • The complex relations between capitalist economics and democratic politics
  • The theoretical foundations and practical applications of fiscal and monetary policy
  • The structure and dynamics of the welfare state 
  • The structure and performance of the Swedish economy
  • The foundations and basic operation of the European Union and the European Monetary Union
  • The roots of the 2008 Financial Crisis and the divergent policy responses to the crisis
  • The genesis of crisis in the Greek economy and the EU policy response
  • To further develop essential skills – in analytical thinking and in both oral and written presentation - that are vital not only in navigating academic studies, but in flourishing in the game of life.

Faculty

Fairouz Hussien

PhD student in Business Administration, Dept. of Marketing & Strategy, Stockholm School of Economics, and 2021 recipient of Outstanding Pedagogical Achievement Award. Her research is on regulatory disruptions as market-shaping forces, often situated in the context of the airline industry. Co-founder of the Methods Lab at SSE.  M.Sc. in Management & Organization (track: Strategy & Sustainability), Hanken School of Economics, and recipient of a Best Master’s Thesis Award by the Foundation for Economic Education for her thesis “A multiple case study on employee engagement and retention at startup companies”. B.Sc. in International Business (track: Marketing & Corporate Communication) from Haaga-Helia UAS. With DIS since 2021.

Stylianos Papaioannou, PhD

Ph.D  in International Entrepreneurship, Uppsala University, M.S. in  International Business Strategy, Linnaeus University. Research focus on International Entrepreneurship, International Opportunity development and organizational behavior of Small and Medium sized Enterprises. 

Kathleen Burke

B.A. in Economics from Hobart and William Smith Colleges (Geneva, NY) and a M.A. in Latin American Studies with honors in International Business Diplomacy from Georgetown University’s Walsh School of Foreign Service (Washington, DC). Worked at Eurasia Group on a project analyzing future geopolitical and economic risks facing companies and nations. Currently a PhD student at the House of Innovation within the Stockholm School of Economics. She is interested in the promise of entrepreneurial ecosystems as a way to organize solutions to water-related and environmental challenges. Her research focuses on the role of different agents encouraging social innovation for sustainable regional development. With DIS since 2021.

Joseph Monroe

Master of Business Administration (HEC Montreal, University of Montreal, 2018), B.A. in Cognitive Psychology (University of Toronto, 2011). Ph.D. student at the House of Innovation, Stockholm School of Economics. Army Captain, Canadian Armed Forces (2009-2016). Specializes in innovation, including technological change, invention psychology, and sustainable energy technology. Has taught courses in global business strategy, innovation strategy, and sustainability. With DIS since 2021.

Course Structure

The course is structured in four modules:

1. Foundations

With Joseph Monroe

Module one takes a broad, birds-eye-view to compare different types of economic systems, as well as monetary, fiscal, and macroprudential policy in developed economies.

2. The Swedish economy and the welfare state.

With Kathleen Burke

Module two takes a deep-dive into the Swedish economy, sustainable development, the Swedish welfare state, and social entrepreneurship in Sweden. We will travel to Sundsvall, Sweden, to take a closer look at Swedish industry.

3. Financial crises

With Stylianos Papaioannou

In module three, we will compare the US Federal Reserve and the European Central Bank, study Eurozone monetary crisis, and travel to Greece to learn more about the 2008 financial crisis.

4. Political economy and industry regulation

With Fairouz Hussien

Module four introduces institutional theory and market-shaping concepts. We will examine a market in motion, namely the US air travel industry, todevelop an understanding of how policies emerge in response to economic issues and how markets can be shaped through regulatory disruptions.

Field Studies & Study Tours

Field studies

In this course we will conduct two short field studies in Stockholm. The first field study will take place on 19 January and consist of a visit to the Royal Coin Cabinet, a history museum in central Stockholm dedicated to the history of money and economic history in general. The second field study will take place on 23 February and will be announced by 10 February.

Study tours

The course includes two study tours. The short study tour takes us to the northern coastal city of Sundsvall, which served historically as the hub for the Swedish timber and paper industries. The focus for our tour is to examine how local government and companies are working to meet ambitious environmental objectives.

The long study tour takes us to Athens, where we will have an opportunity to carry out an in-depth examination of the genesis and key features of the ongoing Greek economic crisis and the policy initiatives that have been employed to reverse long term economic stagnation.

Grading

Assignment

Percent
Attendance/Class Participation

20%

Mid-term

20%

Course Essay

30%

Final Take-home Examinaton

30%

Attendance/Class Participation (20%): 

  • Your participation grade reflects the importance of being active in this course, which relies in great part on the reflections, discussions, and exercises in class. 
  • Attending class earns a grade of 70.
  • Raising questions and engaging in discussions earns additional points.

Mid-term Exam (20%) 

  • There will be a mid-term exam covering the theories and concepts that have been discussed in modules one and two.
  • The exam shall consist of a mixture of multiple choice and short-form answer questions.
  • The duration of the examination will be 80 minutes.
  • No study aids (e.g. cheat sheets) are permitted.

Essay (20%)

  • The purpose of the essay is to provide the opportunity to conduct in-depth analysis of the complexity inherent in comparative economics using  comparative and counterfactual reasoning.
  • The   instructions for the essay will be released shortly after the completion of the midterm exam. This way, you can develop and refine your essay argument throughout the Athens trip.
  • Your essay will integrate some but not all aspects of the course.

Final Exam (20%) 

  • The exam shall consist of a case analysis. The case will describe a national economic system and several social problems that exist within the case country. You will be asked to conduct a qualitative analysis of the economic system and national economic policy, to analyze alternative policy recommendations, as well as to suggest your own policy recommendations. 
  • To answer the exam questions, you will have to draw upon both material covered throughout the course and your own experience.
  • The exam format is a take-home exam.

Approach to Teaching

Learning is a collective endeavour. Engaged dialogue enriches our understanding of the world. While lectures provide useful information and stimulate creative thought, deeper learning takes place only when the student takes an active role. That is, if the student reads carefully, raises questions and objections, and listens to others. We expect students to value their own education, the education of their classmates, and to actively engage in the learning process.

Our teaching approach places a strong emphasis on discussion and student participation. Everyone is expected to not only complete the readings for each class, but to come to class prepared to engage in discussion.  Attendance at all lectures and field studies is mandatory. If you are unable to attend class, it is your responsibility to contact your teacher and take responsibility for anything you have missed.

Note that it is important to check your e-mail and DIS Canvas regularly since outlines, exam info etc. will be distributed here.

Expectations of the Students

Students are expected to have done the readings and come prepared with relevant questions and notes for each class. This will give us material to generate conversation. When responding to questions in class, make reference to the readings to support the points you are making. Students are expected to challenge themselves and their worldviews with an open mindset and genuine intellectual curiosity. 

Note on Use of Electronic Devices in the Classroom

An extensive body of research has shown that the use of laptops in the classroom leads to suboptimal learning outcomes. For this reason, computers will only occasionally be used. The use of other electronic devices such as mobile phones is prohibited.

On COVID-19

If you test positive for COVID-19 during your time at DIS Stockholm, please call the DIS emergency phone +46 721412862.

We all have a collective responsibility to avoid the spread of COVID-19 at DIS. Throughout this semester, please monitor yourself carefully for symptoms of COVID-19 (dry cough, high temperature, breathing difficulties, sore throat, headache, muscle pain, loss of smell/taste). If you experience any of these symptoms, please stay home and contact the DIS emergency phone. The respondent will coordinate with Academics at DIS Stockholm, who will in turn contact your individual faculty. If you are otherwise well but isolating due to possible exposure or mild symptoms, it is your responsibility to keep up with your coursework; we will organize hybrid classes for you to join via Zoom. If you are unwell due to COVID-19 and unable to attend class or study, your absence will be excused. Your faculty will work with you to ensure you are able to make up missed course content due to illness. You are still responsible for completing any missed work.

Academic Regulations  

Please make sure to read the Academic Regulations on the DIS website. There you will find regulations on:

Readings

For Modules one and three we will use an e-textbook developed by CORE.

PDFs are uploaded and available for each class via the calendar.

  • Acs, Z. J., Stam, E., Audretsch, D. B., & O’Connor, A. (2017). The lineages of the entrepreneurial ecosystem approach. Small Business Economics, 49(1), 1-10.

  • Blomström, M., & Kokko, A. (2007). From natural resources to high-tech production: the evolution of industrial competitiveness in Sweden and Finland. Natural resources: neither curse nor destiny, 213-56.

  • Chaminade, C., & Edquist, C. (2006). Rationales for public policy intervention from a systems of innovation approach: the case of VINNOVA. CIRCLE, Lund University.

  • Ejdemo, T., & Söderholm, P. (2011). Mining investment and regional development: A scenario-based assessment for Northern Sweden. Resources Policy, 36(1), 14-21.

  • Easterly, W., & Rebelo, S. (1993). Fiscal policy and economic growth. Journal of monetary economics, 32(3), 417-458.

  • Friedman, M. (1948). A monetary and fiscal framework for economic stability. The American economic review, 38(3), 245-264.

  • Huber, E., Stephens, J. D., Guillén, M. F., & Keates, D. (1999). Welfare state and production regimes in the era of retrenchment (pp. 1-38). School of Social Science, Institute for Advanced Study

  • Kahn, A.E. (1988) Surprises of Airline Deregulation. The American Economic Review; 78(2), ABI/INFORM, pp.316-322.

  • Lindbom, A. (2001). Dismantling the social democratic welfare model? Has the Swedish welfare state lost its defining characteristics?. Scandinavian Political Studies, 24(3), 171-193.

  • Pew Research Center (2021). In Their Own Words: Behind Americans’ Views of ‘Socialism’ and ‘Capitalism.’

  • Stiglitz, J.E. (2019) Why Government? in People, Power, and Profits: Progressive Capitalism for an Age of Discontent. W.W. Norton & Company, New York.

  • Svensson, L. E. (2012). Practical monetary policy: Examples from Sweden and the United States (No. w17823). National Bureau of Economic Research.

  • Svensson, L. E. (2017). Cost-benefit analysis of leaning against the wind. Journal of Monetary Economics, 90, 193-213.

  • Svensson, L. E. (2018). Monetary policy and macroprudential policy: Different and separate?. Canadian Journal of Economics/Revue canadienne d'économique, 51(3), 802-827.

  • Turnheim, B., and Geels, F.W. (2012) Regime destabilisation as the flipside of energy transitions: Lessons from the history of the British coal industry (1913–1997), Energy Policy, 50, pp. 35-49.

  • Vietor, R.H.K. (1990) Contrived Competition: Airline Regulation and Deregulation, 1925 – 1988. The Business History Review, 66(1), President & Fellows of Harvard College, pp. 61-108.
  • Additional readings TBA

Course Summary:

Date Details Due