COLUMBIA UNIVERSITYÝ

School of International and Public Affairs

EMPA U8216 MICROECON & POLICY ANALYSIS I

Spring 2002 Saturday 11:00-12:50pm

Faculty:

Stephen CameronÝ 1309B IABÝ 854-4818.Ý
Office Hours:Ý Saturday 1-2pm or by appointment.

TA: Sangeeta Goyal, [email protected].Ý

Texts:Ý

Pindyck and Rubinfeld, Microeconomics, 5^th edition.Ý A study guide is also available; I recommend it given our limited class time. In addition, Weimer and Vining=s Policy Analysis: Concepts and Practice is recommended, particularly if you are interested in pursuing a career in policy analysis.Ý

A required reading this semester is The Wall Street Journal Guide to Money and Investing, by Morris and Siegel.

Grading:Ý

Grades are based on five problem sets (25%), a policy paper (30%) and a final (45%).ÝÝ All problem sets must be handed in on time, though you may skip one.Ý

In addition,Ý two cost-benefit reports may be turned in for 2% extra credit (1% for each). The cost-benefit reports are due with the final.Ý They are simply one-page summaries of two economic cost-benefit analyses of your choosing.Ý Binders of reports are available or you may have two other reported approved by me. This assignment will be discussed more in class.

Term Paper:

A list of topics will be handed out later in the course.Ý The paper should be 6-10 pages (5-7 pages of double-spaced text), including bibliography and all graphs and tables.ÝÝ The paper is not a research paper; it is an exercise in economic analysis.Ý Grades will be based on (i) content and (ii) clarity.Ý Late papers will have points subtracted.

Readings and problems:

JAN 26 - WEEK 1

Preliminaries.
Production Theory.
PR Ch.s 2, 6, and 7.
What do firms do?

FEB 2 - WEEK 2

Marginal decision making: firm costs and supply in short- and long-run.
PR.Ý Ch. 7 and 8.

FEB 9 - WEEK 3

Finish costs and supply.Ý
Market efficiency and general equilibrium and trade.Ý
PR 16.4-16.7.
PS 1 assigned (due in 2 weeks)

FEB 6 - WEEK 4

Finish general equilibrium.
Read all of The Wall Street Journal Guide to Money and Finance.

FEB 23 - WEEK 5

Capital markets, investing, barriers to investing.
PS 2 assigned (due in 2 weeks)
Handout. PR 4.4 and PR Ch 9.

MARCH 2 - WEEK 6

Finish Capital markets.

MARCH 9 - WEEK 7

Cost-benefit analysis in a competitive market.
POLICY PAPER TOPICSÝ HANDEDÝ OUT.Ý
PS 3 assigned (due in 1 week)

MARCH 16 - WEEK 8ÝÝÝÝÝÝÝÝ NO CLASS

MARCH 23 - WEEK 9

Taxes and more on cost-benefit analysis. Ý
PS 4 assigned (due in 2 weeks)

MARCH 30 - WEEK 10

Monopoly and regulation.
PR Ch.s 10, 11, 14.3, 14.4.ÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ

APRILÝ6 - WEEK 11

Monopoly and regulation (continued).Ý
Externalities.
PS 5 assigned (due in 3 weeks)

APRIL 13 - WEEK 12

Externalities and property rights.ÝÝ
PR Ch. 18..

APRIL 20 - WEEK 13ÝÝÝÝÝÝÝ NO CLASS

APRIL 27 - WEEK 14

Increasing returns to scale problems; nonrenewable resources;peak-load pricing.Ý
PAPERS DUE

APRIL 27 - WEEK 15

Profit and not-for-profit firms.Ý
Course Review. ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ Ý

MAY 4 - WEEK 16ÝÝÝÝÝÝÝÝ FINAL EXAMÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ