| 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 (15. min.) in course curriculum with 20 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 | LOJB10259 Microeconomics strongly recommended | ||||||||||||
| Restrictions | None | ||||||||||||
| Course Content | |||||||||||||
| The content of this course falls in a theoretical and an applied part. The theoretical part consists of basic welfare economic theory using utility maximization and Pareto-efficiency as a reference point for the perception that the free market maximizes welfare. Welfare is, however, only maximized in the absence of market failures and focus is at the market failures: public goods, externalities and asymmetric information. Public and private efficiency-improving intervention in the market including the design of policies is discussed for each of the market failures. Common property resources are also reviewed. Second, welfare depends on the policy setting in which decisions are taken. This is addressed under political economy, focusing at the process of policy-making and the relationship between government and different interest group on a political market. Third, non-efficiency related arguments for intervention, are introduced, motivated by policy-makers concern with consequences of the income distribution generated by the market. Focus is at motivations and instruments for income redistribution and social security. Finally, the funding of public spending is considered in a public finance perspective focusing at tax theory, efficient and equitable taxation and behavior. Throughout the theoretical part, the design and consequences of various economic policy instruments will be presented and analyzed in relation to the fulfilling of government objectives and the overall efficiency of resource allocation. The applied part consists of case studies of agriculture, fisheries and environment policies, analyzing them using the instruments introduced in the theoretical part. In agriculture, government intervention terms like multifunctionality and the farm income problem are explained. In relation to policy instruments numerous agricultural policy measures are analyzed 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. In fisheries, the tragedy of the commons where unregulated markets lead to overexploitation and overcapacity is reviewed. Finally, a case on water management is presented focusing at nitrogen pollution and management. | |||||||||||||
| Teaching and learning Methods | |||||||||||||
| The teaching is based on lectures that introduce the central and crucial elements of the curriculum. Furthermore, there will be exercises in the theoretical part of the course 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 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 . Understand the concept of the market failures: public goods, externalities and asymmetric information . Show overview of distribution and efficiency effects of government taxing activities . Describe the political economy of the Common Agricultural Policy Skills . Analyze welfare, efficiency and income distribution consequences of policies in agriculture, fisheries and the environment . Identify efficient policy instruments in these sectors using analytical tools from welfare economics . Choose and apply relevant welfare economic analytical methods on cases within agricultural, fisheries and environmental policies Competences . Choose and apply relevant welfare economic analytical methods also on other policies than in agriculture, fisheries and the environment | |||||||||||||
| Course Literature | |||||||||||||
| The curriculum consists of a number book chapters, articles and report contriubutuons which is specified in details in the curriculum list. | |||||||||||||
| 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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