| Responsible Department | Institute of Food and Resource Economics | ||||||||||||||||||||
| Earliest Possible Year | BSc. 2 year to BSc. 3 year | ||||||||||||||||||||
| Duration | One block | ||||||||||||||||||||
| Credits | 7.5 (ECTS) | ||||||||||||||||||||
| Level of Course | BSc | ||||||||||||||||||||
| Examination | Final Examination oral examination All aids allowed Description of Examination: Ordinary oral examination (25. min.) in course curriculum with 30 min. preparation time. Weight: 100 percent 7-point scale, internal examiner | ||||||||||||||||||||
| Organisation of Teaching | Lectures, exercises and student presentations. | ||||||||||||||||||||
| Block Placement | Block 3 Week Structure: C | ||||||||||||||||||||
| Language of Instruction | English | ||||||||||||||||||||
| Optional Prerequisites | 290055 Micro Economics | ||||||||||||||||||||
| Restrictions | None | ||||||||||||||||||||
| Course Content | |||||||||||||||||||||
| The content of this course falls in four parts. First basic welfare economics like utility maximization, duality, and pareto efficiency is introduced. The idea is to establish the free market as a reference point for policy analysis. Second, two groups of welfare economic arguments for intervention will be presented and analysed. These arguments can be divided into efficiency-oriented arguments and non-efficiency-oriented arguments. The former group is based on policy-makers perceptions that markets are failing to perform adequately because of a long list of market failures like public goods, externalities, economic of scale, imperfect competition, transaction costs and imperfect information. The latter group of arguments is motivated by policy-makers concern with consequences of income distribution generated by the market. Third the design and consequences of various economic policy instruments will be presented and analysed in relation to the fulfilling of government objectives and the overall efficiency of resource allocation. As an analytical tool the concept of consumer and producer surplus will be introduced as the basis for analysing various revenue creating measures and regularly instruments. Fourth the course will focus on Public Finance and Public Choice. The former focuses on the taxing and spending activities of the government and their influence on the allocation of resources and distribution of income. The latter focus on the process of policy-making hence the relationship between government and different interest group on a political market place. Throughout the course agricultural policy will be used as a case showing the applied side of theories. As explanations of government intervention terms like multifunctionality and the farm income problem are explained. In relation to policy instruments numerous agricultural policy measures are analysed in relation to fulfilling objectives and resource allocation. On the revenue side taxes and tariffs are presented and on the expenditure side instruments like production reduction, price support and direct payments are presented. The agricultural policy-making process in the European Union is used to explain Public Choice. | |||||||||||||||||||||
| Teaching and learning Methods | |||||||||||||||||||||
| The teaching is based on lectures that introduce the central and crucial elements of the curriculum. These central topics will further be touched upon in colloquies where the students will read, present and discuss various scientific articles. Furthermore there will be both theoretical and practical exercises in which the students can develop their understanding of the subject further. | |||||||||||||||||||||
| Learning Outcome | |||||||||||||||||||||
| The learning outcome of this course is to use economic theory (Welfare Economics, Public Choice and Public Finance) to explain the foundation of economic policy, the design and the transfer efficiency of different policy instruments, welfare consequences of economic policy, and the process of policy-making. Overall it is expected that the students will learn basic tools for future economic policy analysis. After completing this course the student is expected to be able to: Knowledge . Identify welfare economic arguments for government intervention in markets . Show overview of the effects of government taxing and spending activities . Describe the economics of policy-making in the European Union and identify key institutions . Describe the political economy of the Common Agricultural Policy Skills . Apply general welfare and public economics on agricultural policy . Analyze the transfer efficiency of key agricultural policy instruments as price support, deficiency payment, and decoupled direct payment . Explain future developments of the Common Agricultural Policy using arguments from political economy Competences . Apply the knowledge and skills obtained in welfare and public economics and in political economy on other European Union issues than agricultural policy | |||||||||||||||||||||
| Course Literature | |||||||||||||||||||||
| Rosen, Harvey S. and Ted Gayer (2008). Public Finance. McGraw-Hill 2008. Boston. + around 200 pages of journal articles and book chapters. | |||||||||||||||||||||
| Course Coordinator | |||||||||||||||||||||
| Max Nielsen, max@foi.dk, Institute of Food and Resource Economics/Unit of Environmental and Natural Resource Economi, Phone: 353-36894 | |||||||||||||||||||||
| Study Board | |||||||||||||||||||||
| Study Committee NSN | |||||||||||||||||||||
| Work Load | |||||||||||||||||||||
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