Course Title : Public Economics

Code 35240
Course Year 3rd year
Term 1st term
Class day & Period Friday・1
Location Kyoutsuu4
Credits 2
Restriction
Lecture Form(s) Lecture
Language English
Instructor Kobayashi, Tatano, Matsushima, Kanda, Yokomatsu

Course Description

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.

Grading

Final Exam: 70-80%, Reports during classes: 20-30%

Course Goals

To understand the basic concept of micro economics for project evaluation of infrastructure

Course Topics

Theme Class number of times Description
Introduction 1 The outline of this course, the role of public
Consumers' behaviour 3 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) 1 Exercise related to above three lectures
Firms' behaviour 3 Firms' behaviour (technology, production function, profit maximisation behavior, cost minimisation behaviour, cost function and supply function, market structure and firms' behaviour)
Exercise (2) 1 Exercise related to above three lectures
Perfect Comititive Market 1 Perfect competitive market, the difference between general equiribrium and partial equiribrium, Pareto effciency
Externality 1 The concept of externalities, its mechanism and variation, policy to internalise externalities
Public Goods 1 The feature of public goods, Samuelson condition
Exercise (3) 1 Exercise related to above three lectures
Cost Benefit Analysis 2 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

Textbook

Hal R. Varian: Intermediate Microeconomics : A Modern Approach, seventh Edition, W. W. Norton & Company, 2005

Textbook(supplemental)

Prerequisite(s)

Students are supposed to have earned a credit for "Systems Analysis and Exercises for Planning and Management"

Web Sites

Additional Information