La Facoltà di Economia dell'Università degli Studi di Roma "Tor Vergata" è un centro di formazione e di ricerca di eccellenza, riconosciuto a livello nazionale ed internazionale, ed è costituito da due dipartimenti: Economia e Finanza e Management e Diritto.
In questa sezione trovi tutte le informazioni di cui hai bisogno per accedere alla nostra offerta formativa (bandi, test di ammissione, borse di studio, residenze e alloggi...) Il tuo futuro comicia da qui!
La Facoltà di Economia, da sempre impegnata a favore della crescita del tessuto socioeconomico italiano e nella cooperazione internazionale, declina la sua Terza missione impegnandosi in una ricerca di eccellenza utile a fini produttivi, capace di contribuire all’avanzamento della conoscenza, dei saperi culturali, scientifici e tecnologici atti a migliorare il benessere della società, attraverso una formazione di qualità, la creazione di partnership istituzionali e progetti con le imprese e per il territorio, il supporto della proprietà intellettuale e dell’imprenditorialità, il placement dei propri laureati, la promozione di iniziative volte a garantire sviluppo sostenibile, innovazione sociale, civic engagement e resilienza.
Office Hour: I haven't an open-door policy. Please respect our office hours. Check here
Credits - CFU: 12
Syllabus Updates and Material: Students are advised to regularly check for syllabus updates. Handouts and presentations will be available in due course.
Description of the Course
The course introduces students to the economics analysis of European integration and structural reforms. The course will cover economic concepts, models and tools developed in the field of international economics and macroeconomics that are particularly suited to provide students with a better understanding of the process of European integration and the structural reforms.
Prerequisites
Students are expected to be familiar with basic microeconomic and macroeconomic concepts and models. A quantitative background is not strictly required, but students will benefit from knowledge of mathematics and statistics. The course is held in English
Learning Objectives
Knowledge and Understanding: In-depth understanding of the monetary integration process, the fiscal rules, the economic implications of the rules and treaties governing the economic functioning of the European Union and of the related implications for the conduct of monetary and fiscal policies (euro crisis, fiscal compact, austerity). Deep understanding of the economic integration process on growth, spatial allocation of economic activity, cohesion and convergence. Knowledge of the role played by reforms on product and labor markets, of the importance of R&D activity and of human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of Europe 2020 economic strategy; discussion of Europe 2030 strategy.
Applying Knowledge and Understanding: To give students familiarity with a broad range of European policy issues; to ensure a good knowledge of the economic grounding of European economic integration; to show students the usefulness of simple analytical models in understanding the relevant aspects of European integration and to give them the ability to apply these analytical tools intelligently. What is learned can be applied to other situations and to actual work in the context of European Institutions and/or National and local public administrations subject to European directives and regulations.
Making Judgements: What is learned can be used to assess critically and without prejudices the activity and the decisions of national and European policymakers.
Communication Skills: Be able to rigorously present facts and complex mechanisms; learn how to present complex facts in a comprehensive manner and communicate the relative conclusions, knowledge and rationale to specialists and non-specialized audiences.
Learning Skills: The course aims at providing students with the tools necessary for future learning. At the end of the course students are expected to be able to read and understand official documents, scientific articles and databases. Students are also expected to develop autonomous learning abilities.
Soft Skills: Special attention will be given to help students develop their soft skills, such as flexibility, integrity and work ethic, positive attitude, responsibility, teamwork and interpersonal skills. It is expected that students work on their own to develop a sound understanding of the material through lecture notes, readings, and assignments. Yet, interaction among students is strongly recommended when revising the course material and when sharing information. A cooperative atmosphere improves achievement.
Exams
Written examination on all program if in presence, otherwise a long oral exam. See Exam Rules for details.
Grading Policy
Please note that a grade of 30/30 represents achievement that is outstanding relative to the level necessary to meet course requirements (students must show an excellent knowledge of the subject, all written work must be well written, competent and accurate; sloppiness of any kind will prevent a student from getting 30/30 as final grade, no matter if the student feels she/he is well prepared). Bargaining on grading is not allowed. Notice that grading is based on performance rather than effort. If you are not happy with the grade, just improve the performance. It is not possible to submit extra work in the attempt to improve a grade.
Zero tolerance policy regarding academic dishonesty
Academic dishonesty includes cheating on exams, plagiarism, improper citation, recycled work, unauthorized assistance, or similar actions. Assignments and projects are specific to individual courses; presenting the same work in two different courses (including previous courses) is considered recycling and is unacceptable.
Students who commit an act of academic dishonesty will receive a failing grade. See also the Exam Rules.
Attedance and Behavior
Attendance is not mandatory, but highly recommended. Attending students are typically able to reap more benefits from the course and more easily meet the learning objectives.
Punctuality is mandatory.
Students must arrive in class on time and must not leave before the end of the class without a specific reason. It is the responsibility of the student to catch up on any missed work. Correct, active and responsible participation is insisted on. Proper behavior and dress code must be observed in class.
Classrooms are to be left in order and clean. Drinking/eating during class is allowed. Electronic devices (cell phones, tablets, laptop computers, etc.) must be switched off during class, unless otherwise instructed.
Syllabus
Last update: 25th November 2019
IMPORTANT: This syllabus will be subject to changes and updates during the semester. The final reading list for each topic will be available step by step. In this way we'll be able to tailor the contents of this course to students' needs, interests and background. Please check this syllabus on a regular basis for any updates.
Please notice that
Starred (*) readings are required
Other readings are optional and are provided for your interest and benefit.
PART 1: The Microeconomic Aspects of European Integration and EU Micro Policies
1. Basic Tools
Logarithms
Derivative w.r.t. time
Some derivative rules
Growth Rates
Final Readings
Any text on basic maths for economists is fine or Appendix A in JV-2013: A.1*, A.2*
2. History, Facts and Institutions
Please review this material - it will not be covered in class.
Final Readings
*BW-2019: chapter 1*: from section 1.1* to section 1.8*, chapter 2 from 2.1* to 2.6*
Steinbach, A. (2014). Price Undertakings in EU Anti-dumping Proceedings — an Instrument of the Past? Journal of Economic Integration, 29(1), 165-187. http://www.jstor.org/stable/23819365
Useful link for trade policy welfare analysis: see here
Growth effects and factor market integration - An analysis using the neoclassical growth model
Labour markets and migration
The EU Single Market
Final Readings
*BW-2019: chapter 6* (Annex included), chapter 7* and chapter 8*
*JV-2013: chapter 2: only section the introduction* and section 2.1*
*Handout 1
*20 Years of the European Single Market, available here
*Presentation 3 (3A*, 3B*, 3C*)
*What benefits from completing the Single Market?, available here
*The EU single market: How it works and the benefits it offers, available here
2018 Annual Report on intra-EU labour mobility, available here
Allen, C., Gasiorek, M. and Smith, A. (1998), European Single Market: How the programme has fostered competition, Economic Policy, 441-486.
Badinger, H., (2005). Growth Effects of Economic Integration: Evidence from the EU Member States, Review of World Economics (Weltwirtschaftliches Archiv), 41(1),50-78.
Badinger, H., (2007). Has the EU's Single Market Programme Fostered Competition? Testing for a Decrease in Mark-up Ratios in EU Industries, Oxford Bulletin of Economics and Statistics, 69(4), 497-519.
Baldwin, R. E. & Forslid, R., (2000),. Trade liberalisation and endogenous growth: A q-theory approach, Journal of International Economics, 50(2), 497-517, .
Clemente, J., Pueyo, F., Sanz, F., (2009), Market potential, European Union and growth, Journal of Policy Modeling, 31(5), 719-730.
Solow, R.M., 1956. A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), pp.65-94.
Vanhoudt, P. (1999), Did the European unification induce economic growth? In search of scale effect and persistent changes Weltwirtschaftliches Archiv, 135 , 193--220
5. The Single Market: Location theories, policies and regional disparities
Location Theories
A workhorse tool for NEG and competition analysis in macro: the Dixit-Stiglitz Model
Agglomeration and dispersion forces
A simple footloose capital (FC) model
Labour market pooling
History v. Expectations
Cohesion Policies
Economic Convergence: measures
Final Readings
*BW-2019: chapter 10
*K-1991, pp. 29-33 (section: History versus Expectations, chapter 1), pp. 38-49 (section: Labor Market Pooling, chapter 2), *Appendixes B & C.
*Handouts 2* (up to equation 13), 3*, 4* (up to equation 14 and the graphical analysis), 5 (optional)
*Presentations # 4A,* 4B* and 5*
*Indermit Gill (2010) * Regional development policies: Place-based or people-centred? VoxEU.org, 9 October
*Brülhart, Marius (2009) I s the new economic geography passé? VoxEU.org, 7 January.
*World Bank (2008), World Development Report 2009: Reshaping Economic Geography, Washington, DC, chapter 4, "A guide to scale economies" (only pp. 129- 140)
Neary, J. Peter, (2001), "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
Krugman, Paul, (1991), "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
Krugman, Paul, (1991), "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
GT-2013, chapter 16.
Baldwin, Richard E. & Venables, Anthony J., (1995). "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644.
Baldwin, Richard E. & Krugman, Paul, (2004),. "Agglomeration, integration and tax harmonisation," European Economic Review, Elsevier, vol. 48(1), pages 1-23, February.
Dixit, A.K., Stiglitz, J.E., (1977) Monopolistic competition and optimum product diversity. American Economic Review 67 (3), 297--308.
Trionfetti, Federico (2001), "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
Annicchiarico, Barbara, Orioli, Federica & Trionfetti, Federico (2012), "National Oligopolies and Economic Geography", The Annals of Regional Science , 48(1), 2012.
6. The Common Agricultural Policy and the EU Budget
The functioning of the CAP
CAP reform
Today's CAP
The EU budget
Final Readings
*BW-2019: chapter 9 + *The effects of an export subsidy here
PART 2: The Macroeconomic Aspects of Monetary Integration and Structural Reforms
7. Basic Macroeconomic Tools
Adaptive expectations & Rational expectations
Bubbles
Money demand and money supply
Open Economy Aspects
Interest rate parity
PPP
The impossible trinity
Marshall-Lerner Condition
Final Readings
Adaptive expectations & Rational expectations
*Handout #6
Bubbles
*Presentation #8
*Handout #7
Olivier J. Blanchard, Mark W. Watson (1983). Bubbles, Rational Expectations and Financial Markets NBER Working Paper No. 945
Money demand and money supply
*BAG-2013: chapter 4: only Sections 4.1*, 4.2*, 4.3*
Open Economy Aspects
*BW-2019: chapter 13 + Annex on various exchange rate regimes
*Presentation #9
*Handout #8
Kenneth Rogoff (1996) The Purchasing Power Parity Puzzle, Journal of Economic Literature, Vol. 34, No. 2. pp. 647-668.
Maurice Obstfeld, Jay C. Shambaugh & Alan M. Taylor (2005). "The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility" in The Review of Economics and Statistics, Vol. 87, No. 3, pp. 423--438.
8. Exchange Rates Determinants and the Euro/Dollar Exchange Rate
*Maurice Obstfeld (1996) Models of Currency Crises with Self-Fulfilling Features, European Economic Review, vol. 40, pp. 1037-1047, ONLY sections 1*, 2*
*Paul Krugman (2012) "The revenge of optimum currency area", Chapter in NBER book NBER Macroeconomics Annual 2012, Volume 27 (2013).
Kenen, P. (1969) "The Theory of Optimum Currency Areas: An Eclectic View" in R.Mundell and A. Swoboda eds, Monetary Problems of the International Economy, The University of Chicago Press.
Mundell, R. (1961) A theory of Optimum Currency Areas, American Economic Review, 51 (4).
10. European Monetary Union
The transition to a monetary union
The 5 entry conditions (Maastricht Criteria): Why convergence requirements?
*Barry Eichengreen & Charles Wyplosz, 1998. "The Stability Pact: more than a minor nuisance?," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 65-113, 04.
*Barry Eichengreen (2010), The Breakup of the Euro Area, in Europe and the Euro (A. Alesina and F. Giavazzi, editors), The University of Chicago Press.
Charles Wyplosz, (2006). "European Monetary Union: the dark sides of a major success," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 207-261, 04
Paul De Grauwe, Yuemei Ji, Fiscal implications of the ECB's bond-buying programme, 14 June 2013, VoxEU.
AH-2009: Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
AN-2005: Altomonte, Carlo and Nava, Mario (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
BAG-2013: Blanchard, O., Amighini A., Giavazzi F., (2015), Macroeconomics, A European Perspective,2nd edition, Pearson.
BW-2019: Baldwin, Richard and Wyplosz, Charles (2019), The Economics of European Integration, 6th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
BSiM-2004: Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
BCFG-2006: Boeri, Tito,Castanheira, Micael, Faini, Riccardo and Galasso,Vincenzo, (2006), Structural Reforms without Prejudices, Oxford University Press.
DG-2018: De Grauwe Paul (2018), The Economics of Monetary Union, 12th edition, Oxford University Press.
JV-2013 Jones, C.I and Vollrath, D.. (2013), Introduction to Economic Growth, W. W. Norton & Company.
K-1991 Krugman Paul (1991), Geography and Trade, MIT Press.
Romer2011: Romer David (2011) Advanced Macroeconomics, The Mcgraw-Hill Series in Economics.
Aggiornato A.A. 2018-2019
Aggiornato A.A. 2018-2019
Master of Science in European Economy & Business Law
Economics of European Integration & Economic Integration and Structural Reforms
Office Hour: We haven't an open-door policy. Please respect our office hours. Check here or here.
Credits - CFU: 12
Syllabus Updates and Material: Students are advised to regularly check for syllabus updates. Handouts and presentations will be available in due course.
Description of the Course
The course introduces students to the economics analysis of European integration and structural reforms. The course will cover economic concepts, models and tools developed in the field of international economics and macroeconomics that are particularly suited to provide students with a better understanding of the process of European integration and the structural reforms.
Prerequisites
Students are expected to be familiar with basic microeconomic and macroeconomic concepts and models. A quantitative background is not strictly required, but students will benefit from knowledge of mathematics and statistics. The course is held in English
Learning Objectives
Knowledge and Understanding: In-depth understanding of the monetary integration process, the fiscal rules, the economic implications of the rules and treaties governing the economic functioning of the European Union and of the related implications for the conduct of monetary and fiscal policies (euro crisis, fiscal compact, austerity). Deep understanding of the economic integration process on growth, spatial allocation of economic activity, cohesion and convergence. Knowledge of the role played by reforms on product and labor markets, of the importance of R&D activity and of human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of Europe 2020 economic strategy.
Applying Knowledge and Understanding: To give students familiarity with a broad range of European policy issues; to ensure a good knowledge of the economic grounding of European economic integration; to show students the usefulness of simple analytical models in understanding the relevant aspects of European integration and to give them the ability to apply these analytical tools intelligently. What is learned can be applied to other situations and to actual work in the context of European Institutions and/or National and local public administrations subject to European directives and regulations.
Making Judgements: What is learned can be used to assess critically and without prejudices the activity and the decisions of national and European policymakers.
Communication Skills: Be able to rigorously present facts and complex mechanisms; learn how to present complex facts in a comprehensive manner and communicate the relative conclusions, knowledge and rationale to specialists and non-specialized audiences.
Learning Skills: The course aims at providing students with the tools necessary for future learning. At the end of the course students are expected to be able to read and understand official documents, scientific articles and databases. Students are also expected to develop autonomous learning abilities.
Soft Skills: Special attention will be given to help students develop their soft skills, such as flexibility, integrity and work ethic, positive attitude, responsibility, teamwork and interpersonal skills. It is expected that students work on their own to develop a sound understanding of the material through lecture notes, readings, and assignments. Yet, interaction among students is strongly recommended when revising the course material and when sharing information. A cooperative atmosphere improves achievement.
Exams
Written examination on all program. See Exam Rules for details. A specimen exam paper will be available soon.
Pre-exam: All EEBL and Erasmus students are eligible to take the pre-exam. This pre-exam is scheduled for December 18th at 9:00. . See Exam Rules for details.
Grading Policy
Please note that a grade of 30/30 represents achievement that is outstanding relative to the level necessary to meet course requirements (students must show an excellent knowledge of the subject, all written work must be well written, competent and accurate; sloppiness of any kind will prevent a student from getting 30/30 as final grade, no matter if the student feels she/he is well prepared). Bargaining on grading is not allowed. Notice that grading is based on performance rather than effort. If you are not happy with the grade, just improve the performance. It is not possible to submit extra work in the attempt to improve a grade.
Zero tolerance policy regarding academic dishonesty
Academic dishonesty includes cheating on exams, plagiarism, improper citation, recycled work, unauthorized assistance, or similar actions. Assignments and projects are specific to individual courses; presenting the same work in two different courses (including previous courses) is considered recycling and is unacceptable.
Students who commit an act of academic dishonesty will receive a failing grade. See also the Exam Rules.
Attedance and Behavior
Attendance is not mandatory, but highly recommended. Attending students are typically able to reap more benefits from the course and more easily meet the learning objectives.
Punctuality is mandatory.
Students must arrive in class on time and must not leave before the end of the class without a specific reason. It is the responsibility of the student to catch up on any missed work. Correct, active and responsible participation is insisted on. Proper behavior and dress code must be observed in class.
Classrooms are to be left in order and clean. Drinking/eating during class is allowed. Electronic devices (cell phones, tablets, laptop computers, etc.) must be switched off during class, unless otherwise instructed.
Syllabus
Last update: 23rd November 2018
IMPORTANT: This syllabus will be subject to changes and updates during the semester. The final reading list for each topic will be available step by step. In this way we'll be able to tailor the contents of this course to students' needs, interests and background. Please check this syllabus on a regular basis for any updates.
Please notice that
Starred (*) readings are required
Other readings are optional and are provided for your interest and benefit.
PART 1: The Microeconomic Aspects of European Integration and EU Micro Policies
1. Basic Tools
Logarithms
Derivative w.r.t. time
Some derivative rules
Growth Rates
First-order differential equations
First-order difference equations
Adaptive expectations
Rational expectation hypothesis
Final Readings
Any text on basic maths for economists is fine or Appendix A in JV-2013
*Handout #0
For expectations: see *Handout#1* (Only Sections 1*, 2*, 4* (introduction + 4.3* )
2. Hystory, Facts and Institutions
Please review this material - it will not be covered in class.
Growth effects and factor market integration - An analysis using the neoclassical growth model
Labour markets and migration
The EU Single Market
Final Readings
*BW-2015: chapter 6-8
*JV-2013: chapter 2
*Handout 2
Handout 3
*20 Years of the European Single Market, available here
*Presentation #2 (2A, 2B, 2C)
*What benefits from completing the Single Market?, available here
*The EU single market: How it works and the benefits it offers, available here
Allen, C., Gasiorek, M. and Smith, A. (1998), European Single Market: How the programme has fostered competition, Economic Policy, 441-486.
Badinger, H., (2005). Growth Effects of Economic Integration: Evidence from the EU Member States, Review of World Economics (Weltwirtschaftliches Archiv), 41(1),50-78.
Badinger, H., (2007). Has the EU's Single Market Programme Fostered Competition? Testing for a Decrease in Mark-up Ratios in EU Industries, Oxford Bulletin of Economics and Statistics, 69(4), 497-519.
Baldwin, R. E. & Forslid, R., (2000),. Trade liberalisation and endogenous growth: A q-theory approach, Journal of International Economics, 50(2), 497-517, .
Clemente, J., Pueyo, F., Sanz, F., (2009), Market potential, European Union and growth, Journal of Policy Modeling, 31(5), 719-730.
Vanhoudt, P. (1999), Did the European unification induce economic growth? In search of scale effect and persistent changes Weltwirtschaftliches Archiv, 135 , 193--220
A workhorse tool for NEG and competition analysis in macro: the Dixit-Stiglitz Model
Agglomeration and dispersion forces
A simple footloose capital (FC) model
Labour market pooling
History v. Expectations
Cohesion Policies
Final Readings
*BW-2015: chapter 10
*K-1991, pp. 29-33 (section: History versus Expectations, chapter 1), pp. 38-49 (section: Labor Market Pooling, chapter 2), *Appendixes B & C.
*Handouts 4-5
Handouts 6-8
*Presentations #3A, 3B and 4
*Indermit Gill (2010) * Regional development policies: Place-based or people-centred? VoxEU.org, 9 October
*Brülhart, Marius (2009) I s the new economic geography passé? VoxEU.org, 7 January.
*World Bank (2008), World Development Report 2009: Reshaping Economic Geography, Washington, DC, chapter 4, "A guide to scale economies" (pp. 129- 140)
Neary, J. Peter, (2001), "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
Krugman, Paul, (1991), "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
Krugman, Paul, (1991), "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
GT-2013, chapter 16.
Baldwin, Richard E. & Venables, Anthony J., (1995). "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644.
Baldwin, Richard E. & Krugman, Paul, (2004),. "Agglomeration, integration and tax harmonisation," European Economic Review, Elsevier, vol. 48(1), pages 1-23, February.
Dixit, A.K., Stiglitz, J.E., (1977) Monopolistic competition and optimum product diversity. American Economic Review 67 (3), 297--308.
Trionfetti, Federico (2001), "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
Annicchiarico, Barbara, Orioli, Federica & Trionfetti, Federico (2012), "National Oligopolies and Economic Geography", The Annals of Regional Science , 48(1), 2012.
6. The Common Agricultural Policy and the EU Budget
The functioning of the CAP
CAP reform
Today's CAP
The EU budget
Final Readings
*BW-2015: chapter 9 + *The effects of an export subsidy here
Kenneth Rogoff (1996) The Purchasing Power Parity Puzzle, Journal of Economic Literature, Vol. 34, No. 2. pp. 647-668.
Maurice Obstfeld, Jay C. Shambaugh & Alan M. Taylor (2005). "The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility" in The Review of Economics and Statistics, Vol. 87, No. 3, pp. 423--438.
8. Exchange Rates Determinants and the Euro/Dollar Exchange Rate
*Maurice Obstfeld (1996) Models of Currency Crises with Self-Fulfilling Features, European Economic Review, vol. 40, pp. 1037-1047, ONLY sections 1*, 2*
*Paul Krugman (2012) "The revenge of optimum currency area", Chapter in NBER book NBER Macroeconomics Annual 2012, Volume 27 (2013).
Kenen, P. (1969) "The Theory of Optimum Currency Areas: An Eclectic View" in R.Mundell and A. Swoboda eds, Monetary Problems of the International Economy, The University of Chicago Press.
Mundell, R. (1961) A theory of Optimum Currency Areas, American Economic Review, 51 (4).
Presentation 12
10. European Monetary Union
The transition to a monetary union
How to fix the conversion rates
The 5 entry conditions: Why convergence requirements?
*Barry Eichengreen & Charles Wyplosz, 1998. "The Stability Pact: more than a minor nuisance?," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 65-113, 04.
*Barry Eichengreen (2010), The Breakup of the Euro Area, in Europe and the Euro (A. Alesina and F. Giavazzi, editors), The University of Chicago Press.
Charles Wyplosz, (2006). "European Monetary Union: the dark sides of a major success," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 207-261, 04
Paul De Grauwe, Yuemei Ji, Fiscal implications of the ECB's bond-buying programme, 14 June 2013, VoxEU.
- Charles Jones and Dietrich Vollrath, Introduction to Economic Growth, Norton 3rd Edition, Chapters 1*, 2*, 3*, and 4*.
Books
AH-2009: Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
AN-2005: Altomonte, Carlo and Nava, Mario (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
BAG-2013: Blanchard, O., Amighini A., Giavazzi F., (2015), Macroeconomics, A European Perspective,2nd edition, Pearson.
BW-2015: Baldwin, Richard and Wyplosz, Charles (2015), The Economics of European Integration, 5th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
BSiM-2004: Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
BCFG-2006: Boeri, Tito,Castanheira, Micael, Faini, Riccardo and Galasso,Vincenzo, (2006), Structural Reforms without Prejudices, Oxford University Press.
DG-2014: De Grauwe Paul (2012), The Economics of Monetary Union, 10th edition, Oxford University Press.
JV-2013 Jones, C.I and Vollrath, D.. (2013), Introduction to Economic Growth, W. W. Norton & Company.
K-1991 Krugman Paul (1991), Geography and Trade, MIT Press.
Romer2011: Romer David (2011) Advanced Macroeconomics, The Mcgraw-Hill Series in Economics.
Aggiornato A.A. 2017-2018
Aggiornato A.A. 2017-2018
Master of Science in European Economy & Business Law
Economics of European Integration & Economic Integration and Structural Reforms
Room: Building B, 2nd floor, Dipartimento di Economia e Finaza, Room 45/B.
Office Hour: I haven't an open-door policy. Please respect the following office hour: Monday 13:00-14:00 during the first term otherwise by e-mail appointment.
Credits - CFU: 12
Syllabus Updates and Material: Students are advised to regularly check for syllabus updates. Handouts and presentations will be available in due course.
Description of the Course
The course introduces students to the economics analysis of European integration and structural reforms. The course will cover economic concepts, models and tools developed in the field of international economics and macroeconomics that are particularly suited to provide students with a better understanding the of the process of European integration and the structural reforms.
Prerequisites
Students are expected to be familiar with basic microeconomic and macroeconomic concepts and models. A quantitative background is not strictly required, but students will benefit from knowledge of mathematics and statistics. The course is held in English
Learning Objectives
Knowledge and Understanding: In-depth understanding of the monetary integration process, the fiscal rules, the economic implications of the rules and treaties governing the economic functioning of the European Union and of the related implications for the conduct of monetary and fiscal policies (euro crisis, fiscal compact, austerity). Deep understanding of the economic integration process on growth, spatial allocation of economic activity, cohesion and convergence. Knowledge of the role played by reforms on product and labor markets, of the importance of R&D activity and of human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of Europe 2020 economic strategy.
Applying Knowledge and Understanding: To give students familiarity with a broad range of European policy issues; to ensure a good knowledge of the economic grounding of European economic integration; to show students the usefulness of simple analytical models in understanding the relevant aspects of European integration and to give them the ability to apply these analytical tools intelligently. What is learned can be applied to other situations and to actual work in the context of European Institutions and/or National and local public administrations subject to European directives and regulations.
Making Judgements: What is learned can be used to assess critically and without prejudices the activity and the decisions of national and European policy makers.
Communication Skills: Be able to rigorously present facts and complex mechanisms; learn how to present complex facts in a comprehensive manner and communicate the relative conclusions, knowledge and rationale to specialists and non-specialized audiences.
Learning Skills: The course aims at providing students with the tools necessary for future learning. At the end of the course students are expected to be able to read and understand official documents, scientific articles and databases. Students are also expected to be develop autonomous learning abilities.
Soft Skills: Special attention will be given to help students develop their soft skills, such as flexibility, integrity and work ethic, positive attitude, responsibility, teamwork and interpersonal skills. It is expected that students work on their own to develop a sound understanding of the material through lecture notes, readings, and assignments. Yet, interaction among students is strongly recommended when revising the course material and when sharing information. A cooperative atmosphere improves achievement.
Exams
Written examination on all program. See Exam Rules for details. A specimen exam paper will be available soon.
Pre-exam: only attending students are eligible to take the pre-exam on the first part of the course. This pre-exam is scheduled for Friday December 15th. See Exam Rules for details.
Assignment
Each regularly attending student must give a presentation on an assigned topic. Presentations will take place during the last two weeks of the course (in December). Presentation slots will be assigned randomly as well as topics (slots and topics can be exchanged). The presentation is worth 20% of the final grade; thus, for attending students, the final exam is worth 80% of the final grade.
Non-attending students are neither allowed to give a presentation nor to take the pre-exam on the first part of the course; thus, for non-attending students, the final exam is worth 100% of the final grade.
For more details, see the file Assignment available in the course material.
Grading Policy
Please note that a grade of 30/30 represents achievement that is outstanding relative to the level necessary to meet course requirements (students must show an excellent knowledge of the subject, all written work must be well written, competent and accurate; sloppiness of any kind will prevent a student from getting 30/30 as final grade, no matter if the student feels she/he is well prepared). Bargaining on grading is not allowed. Notice that grading is based on performance rather than effort. If you are not happy with the grade, just improve the performance. It is not possible to submit extra work in the attempt to improve a grade.
Academic Honesty
Academic integrity is of paramount importance, as trust between writers and their readers as well as between teachers and their students is the most fundamental asset for scientific knowledge and its transmission. Academic dishonesty includes cheating on exams, plagiarism, improper citation, recycled work, unauthorized assistance, or similar actions. Assignments and projects are specific to individual courses; presenting the same work in two different courses (including previous courses) is considered recycling and is unacceptable.
Students who commit an act of academic dishonesty will receive a failing grade. See also Exam Rules here.
Attedance and Behavior
Attendance is not mandatory, but highly recommended. Attending students are typically able to reap more benefits from the course and more easily meet the learning objectives. Additionally, attending students will be evaluated during the course (assignment + pre-exam), which provides a stronger incentive to familiarize with the material in due time, enhancing learning and often leading to more successful outcomes.
Punctuality is mandatory.
Students must arrive in class on time and must not leave before the end of the class without a specific reason. It is the responsibility of the student to catch up on any missed work. Correct, active and responsible participation is insisted on. Proper behavior and dress code must be observed in class.
Classrooms are to be left in order and clean. Students must take care of available equipment and materials and promptly report any damage and loss. Drinking/eating during class is allowed. Electronic devices (cell phones, tablets, laptop computers, etc.) must be switched off during class, unless otherwise instructed.
Attending Students: Students are classified as "attending students" if they miss no more than 8 classes in total. Attending students' presentations are full part of the course and attendance counts towards the "attending student" status. Names could be taken at the beginning and/or at the end of classes in order to verify attendance.
Non-attending Students: Students with more than 8 absences or who are involved in internships or are abroad for the Erasmus and the Overseas programme are classified as "non-attending students". Non-attending students are responsible to make up all work missed. Office hours are devoted to clarifications not to private lessons.
Syllabus
Last update: 20th November 2017
IMPORTANT: This syllabus will be subject to changes and updates during the semester. The final reading list for each topic will be available step by step. In this way I'll be able to tailor the contents of this course to students' needs, interests and background. Please check this syllabus on a regular basis for any updates.
Please notice that
Starred (*) readings are required
Other readings are optional and are provided for your interest and benefit.
I PART
1. Basic Tools
Logarithms
Derivative w.r.t. time
Some derivative rules
Growth Rates
First-order differential equations
First-order difference equations
Adaptive expectations
Rational expectation hypothesis
Final Readings
Any text on basic maths for economists is fine or Appendix A in JV-2013
*Handout #0
For expectations: see *Handout#1* (Only Sections 1*, 2*, 4* (introduction + 4.3* )
2. Hystory, Facts and Institutions
Please review this material - it will not be covered in class.
3. The Microeconomics of Economic Integration & The Economics of Preferential Trade Agreement
Final Readings
Basic microeconomic tools
Economics of preferential liberalization
Final Readings
*BW-2015: chapters 4-5
*Presentation #1
Useful link for trade policy welfare analysis: see here
4. The Single Market: The Essential Economics
Market size and scale effects
Growth effects and factor market integration - An analysis using the neoclassical growth model
Labour markets and migration
The EU Single Market
Final Readings
*BW-2015: chapter 6-8
*JV-2013: chapter 2
*Handouts 2-3
*20 Years of the European Single Market, available here
*Presentation #2 (2A, 2B, 2C)
*What benefits from completing the Single Market?, available here
*The EU single market: How it works and the benefits it offers, ,available here
Allen, C., Gasiorek, M. and Smith, A. (1998), European Single Market: How the programme has fostered competition, Economic Policy, 441-486.
Badinger, H., (2005). Growth Effects of Economic Integration: Evidence from the EU Member States, Review of World Economics (Weltwirtschaftliches Archiv), 41(1),50-78.
Badinger, H., (2007). Has the EU's Single Market Programme Fostered Competition? Testing for a Decrease in Mark-up Ratios in EU Industries, Oxford Bulletin of Economics and Statistics, 69(4), 497-519.
Baldwin, R. E. & Forslid, R., (2000),. Trade liberalisation and endogenous growth: A q-theory approach, Journal of International Economics, 50(2), 497-517, .
Clemente, J., Pueyo, F., Sanz, F., (2009), Market potential, European Union and growth, Journal of Policy Modeling, 31(5), 719-730.
Vanhoudt, P. (1999), Did the European unification induce economic growth? In search of scale effect and persistent changes Weltwirtschaftliches Archiv, 135 , 193--220
A workhorse tool for NEG and competition analysis in macro: the Dixit-Stiglitz Model
Agglomeration and dispersion forces
A simple footloose capital (FC) model
Labour market pooling
History v. Expectations
Special topics
Cohesion Policies
Final Readings
*BW-2015: chapter 10
*K-1991, pp. 29-33 (section: History versus Expectations, chapter 1), pp. 38-49 (section: Labor Market Pooling, chapter 2), *Appendixes B & C.
*Handouts 4-8
*Presentations #3A, 3B and 4
*Neary, J. Peter, (2001), "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
*Krugman, Paul, (1991), "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
*Krugman, Paul, (1991), "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
Baldwin, Richard E. & Venables, Anthony J., (1995). "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644.
Baldwin, Richard E. & Krugman, Paul, (2004),. "Agglomeration, integration and tax harmonisation," European Economic Review, Elsevier, vol. 48(1), pages 1-23, February.
Dixit, A.K., Stiglitz, J.E., (1977) Monopolistic competition and optimum product diversity. American Economic Review 67 (3), 297--308.
Trionfetti, Federico (2001), "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
Annicchiarico, Barbara, Orioli, Federica & Trionfetti, Federico (2012), "National Oligopolies and Economic Geography", The Annals of Regional Science , 48(1), 2012.
*OECD (2009), Regions Matter: Economic Recovery, Innovation and Sustainable Growth. Paris, chapter 1.
*Presentations #5
Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth", The Quarterly Journal of Economics, vol. 107(2), pages 407-37, available here.
Bernard, A.B. & Durlauf, S. N. 1996, "Intepreting Tests of the Convergence Hypothesis", Journal of Econometrics 71, pages 161-173.
*Kenneth Rogoff (1996) The Purchasing Power Parity Puzzle, Journal of Economic Literature, Vol. 34, No. 2. pp. 647-668.
*Maurice Obstfeld, Jay C. Shambaugh & Alan M. Taylor (2005). "The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility" in The Review of Economics and Statistics, Vol. 87, No. 3, pp. 423--438.
Lothian, James R. & Wu, Liuren, 2011. "Uncovered interest-rate parity over the past two centuries," Journal of International Money and Finance, vol. 30(3), pp 448-473.
9. Exchange Rates Determinants and the Euro/Dollar Exchange Rate
*Maurice Obstfeld (1996) Models of Currency Crises with Self-Fulfilling Features, European Economic Review, vol. 40, pp. 1037-1047, sections 1*, 2*
*Paul Krugman (2012) "The revenge of optimum currency area", Chapter in NBER book NBER Macroeconomics Annual 2012, Volume 27 (2013).
*Kenen, P. (1969) "The Theory of Optimum Currency Areas: An Eclectic View" in R.Mundell and A. Swoboda eds, Monetary Problems of the International Economy, The University of Chicago Press.
*Mundell, R. (1961) A theory of Optimum Currency Areas, American Economic Review, 51 (4).
11. European Monetary Union
How to fix the conversion rates
The 5 entry conditions: Why convergence requirements?
*Buiter, W.H. & Corsetti, G. & Roubini, N., 1992. Excessive Deficits: Sense and Nonsence in the Treaty of Maastricht, available here.
*Barry Eichengreen & Charles Wyplosz, 1998. "The Stability Pact: more than a minor nuisance?," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 65-113, 04.
*Eric Leeper (1993) The Policy Tango: Toward a Holistic View of Monetary and Fiscal Effects, Atlanta Fed Economic Review.
M. Wickens (2008), Macroeconomic Theory, Princenton University Press, chapter 5.
*Barry Eichengreen (2010), The Breakup of the Euro Area, in Europe and the Euro (A. Alesina and F. Giavazzi, editors), The University of Chicago Press.
Charles Wyplosz, (2006). "European Monetary Union: the dark sides of a major success," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 207-261, 04
Paul De Grauwe, Yuemei Ji, Fiscal implications of the ECB's bond-buying programme, 14 June 2013, VoxEU.
AH-2009: Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
AN-2005: Altomonte, Carlo and Nava, Mario (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
BAG-2013: Blanchard, O., Amighini A., Giavazzi F., (2015), Macroeconomics, A European Perspective,2nd edition, Pearson.
BW-2015: Baldwin, Richard and Wyplosz, Charles (2012), The Economics of European Integration, 5th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
BSiM-2004: Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
BCFG-2006: Boeri, Tito,Castanheira, Micael, Faini, Riccardo and Galasso,Vincenzo, (2006), Structural Reforms without Prejudices, Oxford University Press.
DG-2014: De Grauwe Paul (2012), The Economics of Monetary Union, 10th edition, Oxford University Press.
JV-2013 Jones, C.I and Vollrath, D.. (2013), Introduction to Economic Growth, W. W. Norton & Company.
K-1991 Krugman Paul (1991), Geography and Trade, MIT Press.
Romer2011: Romer David (2011) Advanced Macroeconomics, The Mcgraw-Hill Series in Economics.
Aggiornato A.A. 2016-2017
Aggiornato A.A. 2016-2017
Master of Science in European Economy & Business Law
Economics of European Integration & Economic Integration and Structural Reforms
Economic Integration and Structural Reforms
Academic Year 2016-2017
DESCRIPTION OF THE COURSE
The course introduces students to the economics analysis of European integration (PART 1) and economic integration and structural reforms (PART 2). The course will cover economic concepts, models and tools developed in the field of international economics and macroeconomics that are particularly suited to provide students with a better understanding the of the process of European integration and the structural reforms.
PREREQUISITES
Students are expected to be familiar with basic microeconomics and macroeconomics concepts and models. A quantitative background is not strictly required, but students will benefit from knowledge of mathematics and statistics. The course is held in English.
LEARNING OBJECTIVES
Knowledge and Understanding: In-depth understanding of the integration process, of the economic implications of the integration process, of the treaties governing the economic functioning of the European Union and of monetary and fiscal policies (global financial crisis, euro sovereign debt crisis, fiscal compact, austerity). Deep understanding of the economic integration process on growth, spatial allocation of economic activity, cohesion and convergence. Knowledge of the role played by reforms on product and labor markets, of the importance of R&D activity and of human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of Europe 2020 economic strategy.
Applying Knowledge and Understanding: To give students familiarity with a broad range of European policy issues; to ensure a good knowledge of the economic grounding of European economic integration; to show students the usefulness of simple analytical models in understanding the relevant aspects of European integration and to give them the ability to apply these analytical tools intelligently. What is learned can be applied to other situations and to actual work in the context of European Institutions and/or National and local public administrations subject to European directives and regulations.
Making Judgements: What is learned can be used to assess critically and without prejudices the activity and the decisions of national and European policy makers.
Communication Skills: be able to rigorously present facts and complex mechanisms; learn how to present complex facts in a comprehensive manner and communicate the relative conclusions, knowledge and rationale to specialists and non-specialized audiences.
Learning Skills: The course aims at providing students with the tools necessary for future learning. At the end of the course students are expected to be able to read and understand official documents, scientific articles and databases. Students are also expected to be develop autonomous learning abilities.
It is expected that students work on their own to develop a sound understanding of the material through lecture notes, readings, and assignments.
ATTENDANCE AND BEHAVIOR
Attendance is not mandatory, but highly recommended. Attending students are typically able to reap more benefits from the course and more easily meet the learning objectives. Additionally, attending students will be evaluated during the course, which provides a stronger incentive to familiarize with the material in due time, enhancing learning and often leading to more successful outcomes.
Punctuality is mandatory. Students must arrive in class on time and must not leave before the end of the class without a specific reason. It is the responsibility of the student to catch up on any missed work. Correct, active and responsible participation is insisted on. Proper behavior and dress code must be observed in class. Classrooms are to be left in order and clean. Students must take care of available equipment and materials and promptly report any damage and loss. Drinking/eating during class is not allowed. Electronic devices (cell phones, tablets, laptop computers, etc.) must be switched off during class, unless otherwise instructed.
Instructors who find a student's behavior is inappropriate will seek to talk with him/her promptly; if the issue continues, the instructor is required to contact the pertinent authority.
Attending Students: Students are classified as "attending students" if they miss no more than 5 classes in total. Attending students' presentations are full part of the course and attendance counts towards the "attending student" status. Names could be taken at the beginning and/or at the end of classes in order to verify attendance.
Non-attending Students: Students with more than 5 absences or who are involved in internships or are abroad for the Erasmus and the Overseas programme are classified as "non-attending students".
ACADEMIC HONESTY
Academic integrity is of paramount importance, as trust between writers and their readers as well as between teachers and their students is the most fundamental asset for scientific knowledge and its transmission. Academic dishonesty include cheating on tests, plagiarism, improper citation, recycled work, unauthorized assistance, or similar actions. Assignments and projects are specific to individual courses; presenting the same work in two different courses (including previous courses) is considered recycling and is unacceptable. Students are required to submit written assignments in electronic format on the due date for plagiarism check.
Students who commit an act of academic dishonesty will receive a failing grade.
OFFICE HOUR
We do not have an open-door policy. Please respect the following office hours.
Enrico Marvasi: by e-mail appointment.
Barbara Annicchiarico: Friday from 13:00-14:00 during the first term, by e-mail appointment during the rest of the year.
EXAMS
Pre-exams
Pre-exams are optional. Pre-exams are mainly devoted to attending students, yet non-attending students are allowed to take them if they wish. There is one pre-exam for each PART; two pre-exams in total. For PART 1, the pre-exam will be on week 6. For PART 2, the pre-exam will be on week 12. Each pre-exam length is 1 hour and 15 minutes. The minimum qualifying grade required to pass the pre-exam on each PART is 18/30. The grade for each passed (18/30 or above) PART can be preserved for the duration of the course session. Grades on each PART will be lost if you decide to take again the exam on the related PART.
Final Exam
The final exam is divided into two equally worth independent parts: i) Economics of European Integration; ii) Economic Integration and Structural Reforms. Exam length on each PART is 1 hour and 15 minutes; therefore, the final exam session will last 2 hours and 30 minutes. The minimum qualifying grade required to get credits for each PART is 18/30; students must get at least 18/30 on both PARTs to pass the course.
ATTENDING STUDENTS' PRESENTATIONS
Each regularly attending student has the possibility to give a presentation on an assigned topic. Presentations will take place during the last two weeks of each PART (weeks 5-6 and 10-12). Presentation slots will be assigned randomly as well as topics. The presentation is worth 20% of the final grade; thus, for attending students, the final exam is worth 80% of the final grade, 40% for PART 1 and 40% for PART 2.
Non-attending students are not allowed to give a presentation; thus, for non-attending students, the final exam is worth 100% of the final grade; 50% for PART 1 and 50% for PART 2.
For more details, see the file Assignment available in the course material.
GRADING POLICY
Please note that a grade of 30/30 represents an achievement that is outstanding relative to the level necessary to meet course requirements (students must show an excellent knowledge of the subject, all written work must be well written, competent and accurate; sloppiness of any kind will prevent a student from getting 30/30 as final grade, no matter if the student feels she/he is well prepared). Bargaining on grading is not allowed. Notice that grading is based on performance rather than effort. If you are not happy with the grade, just improve the performance.
SYLLABUS
This module will introduce the student to the economics of European integration from a macroeconomic perspective. This part will cover ECB monetary policy, fiscal policy, economic convergence and structural reforms.
Reading list
Last update: November 2016
IMPORTANT: This syllabus will be subject to changes and updates during the semester. The full reading list for each topic will be available step by step. In this way I'll be able to tailor the contents of this course to students' needs and background. Please check this syllabus on a regular basis for any updates.
Please notice that
Starred (*) readings are required.
Double starred (**) readings are STRONGLY required
Other readings are optional and are provided for your interest and benefit.
1. Basic Tools
Logarithms
Derivative w.r.t. time and the notion of growth rates in continuous time
Growth Rates
Some derivative rules
First-order differential equations
First-order difference equations
Rational expectations hypothesis
Readings
For rational expectations: see Handout #1** (subsections 3.1, 3.3, 3.3 4.1, 4.2 are optional)
For the rest: any text on basic maths for economists is fine plus Handout #0.* You can also look at Appendix A of the Jones book Introduction to Economic Growth.
2. Basic Macroeconomic Tools
Money demand and money supply
Interest rate parity
PPP
The impossible trinity
Rational bubbles
Marshall-Lerner Condition
Readings
BW-2015: chapter 13**
Presentation #1**
Handout #2**; Handout on Marshall and Lerner Condition**
**Kenneth Rogoff (1996) The Purchasing Power Parity Puzzle, Journal of Economic Literature, Vol. 34, No. 2. pp. 647-668.
**Maurice Obstfeld, Jay C. Shambaugh & Alan M. Taylor (2005). "The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility" in The Review of Economics and Statistics, Vol. 87, No. 3, pp. 423--438.
*Olivier J. Blanchard, Mark W. Watson (1983). Bubbles, Rational Expectations and Financial Markets NBER Working Paper No. 945
Lothian, James R. & Wu, Liuren, 2011. "Uncovered interest-rate parity over the past two centuries," Journal of International Money and Finance, Elsevier, vol. 30(3), pp 448-473.
Macro indicators in Italy after the crisis of 1992-1993, here
BW-2015: chapters 14**-15**
Maurice Obstfeld (1996) Models of Currency Crises with Self-Fulfilling Features, European Economic Review, vol. 40, pp. 1037-1047, sections 1**, 2**
**Paul Krugman (2012) "The revenge of optimum currency area", available at http://www.economics.cornell.edu/arazin/Paul%20Krugman2012.pdf
Kenen, P. (1969) "The Theory of Optimum Currency Areas: An Eclectic View" in R.Mundell and A. Swoboda eds, Monetary Problems of the International Economy, The University of Chicago Press.
Mundell, R. (1961) A theory of Optimum Currency Areas, American Economic Review, 51 (4).
**Buiter, W.H. & Corsetti, G. & Roubini, N., 1992. Excessive Deficits: Sense and Nonsence in the Treaty of Maastricht, available here.
**Barry Eichengreen & Charles Wyplosz, 1998. "The Stability Pact: more than a minor nuisance?," Economic Policy, CEPR & CES & MSH, vol. 13(26), pages 65-113, 04.
*Eric Leeper (1993) The Policy Tango: Toward a Holistic View of Monetary and Fiscal Effects, Atlanta Fed Economic Review.
*M. Wickens (2008), Macroeconomic Theory, Princenton University Press, chapter 5.
*Andrew Mountford & Harald Uhlig, 2009. "What are the effects of fiscal policy shocks?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 960-992.
**Barry Eichengreen (2010), The Breakup of the Euro Area, in Europe and the Euro (A. Alesina and F. Giavazzi, editors), The University of Chicago Press.
**Charles Wyplosz, (2006). "European Monetary Union: the dark sides of a major success," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 207-261, 04
**Paul De Grauwe, Yuemei Ji, Fiscal implications of the ECB's bond-buying programme, 14 June 2013, VoxEU.
**Pierre Pâris, Charles Wyplosz, To end the Eurozone crisis, bury the debt forever, 6 August 2013, VoxEU.
*Mankiw, N Gregory & Romer, David & Weil, David N, 1992. A Contribution to the Empirics of Economic Growth", The Quarterly Journal of Economics, vol. 107(2), pages 407-37, available here.
10. Structural Reforms I: Fostering Growth through Competition Policies
AH-2009: Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
AN-2005: Altomonte, Carlo and Nava, Mario (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
BAG-2013: Blanchard, O., Amighini A., Giavazzi F., (2015), Macroeconomics, A European Perspective,2nd edition, Pearson.
BW-2015: Baldwin, Richard and Wyplosz, Charles (2012), The Economics of European Integration, 5th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
BSiM-2004: Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
BCFG-2006: Boeri, Tito,Castanheira, Micael, Faini, Riccardo and Galasso,Vincenzo, (2006), Structural Reforms without Prejudices, Oxford University Press.
DG-2012: De Grauwe Paul (2012), The Economics of Monetary Union, 9th edition, Oxford University Press.
Jones-2013 Jones, C.I. (2013), Introduction to Economic Growth, W. W. Norton & Company.
Romer2011: Romer David (2011) Advanced Macroeconomics, The Mcgraw-Hill Series in Economics.
ENIT
Aggiornato A.A. 2015-2016
Aggiornato A.A. 2015-2016
Master of Science in European Economy & Business Law
Economics of European Integration & Economic Integration and Structural Reforms
II PART
Economic Integration and Structural Reforms
Academic Year 2015-2016
E-mail address: barbara.annicchiarico@uniroma2.it
My e-mail policy: Please visit the Teaching Material section.
Room: Building B, 2nd floor, Room 45/B.
Office Hour: Monday 13:00-14:00 during the first term otherwise by e-mail appointment.
Syllabus Updates and Material: Students are advised to regularly check the course webpage for syllabus updates. Handouts and presentations will be available in due course.
Exams: Written examinations. See Presentation #0 for details. A specimen exam paper is available in the Teaching Material section.
Assignment: Each regularly attending student is required to give a presentation on an assigned topic. See Presentation #0. Details and instructions are available on the course webpage.
Academic Honesty: Students who commit an act of academic dishonesty will receive a failing grade.
Grading Policy: Please note that a grade of 30/30 represents achievement that is outstanding relative to the level necessary to meet course requirements (students must show an excellent knowledge of the subject, all written work must be well written, competent and accurate; sloppiness of any kind will prevent a student from getting 30/30 as final grade, no matter if the student feels she/he is well prepared).
Learning Objectives
Knowledge and Understanding: In-depth understanding of the monetary integration process, the fiscal rules, the economic implications of the rules and treaties governing the economic functioning of the European Union and of the related implications for the conduct of monetary and fiscal policies (euro crisis, fiscal compact, austerity). Deep understanding of the economic integration process on growth, spatial allocation of economic activity, cohesion and convergence. Knowledge of the role played by reforms on product and labor markets, of the importance of R&D activity and of human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of Europe 2020 economic strategy.
Applying Knowledge and Understanding: To give students familiarity with a broad range of European policy issues; to ensure a good knowledge of the economic grounding of European economic integration; to show students the usefulness of simple analytical models in understanding the relevant aspects of European integration and to give them the ability to apply these analytical tools intelligently. What is learned can be applied to other situations and to actual work in the context of European Institutions and/or National and local public administrations subject to European directives and regulations.
Making Judgements: What is learned can be used to assess critically and without prejudices the activity and the decisions of national and European policy makers.
Communication Skills: be able to rigorously present facts and complex mechanisms; learn how to present complex facts in a comprehensive manner and communicate the relative conclusions, knowledge and rationale to specialists and non-specialized audiences.
Learning Skills: The course aims at providing students with the tools necessary for future learning. At the end of the course students are expected to be able to read and understand official documents, scientific articles and databases. Students are also expected to be develop autonomous learning abilities.
It is expected that students work on their own to develop a sound understanding of the material through lecture notes, readings, and assignments.
Syllabus
Last update: 12 November 2015
IMPORTANT: This syllabus will be subject to changes and updates during the semester. The full reading list for each topic will be available step by step. In this way I'll be able to tailor the contents of this course to students' needs and background. Please check this syllabus on a regular basis for any updates.
Please notice that
Starred (*) readings are required.
Double starred (**) readings are STRONGLY required
Other readings are optional and are provided for your interest and benefit.
1. The microeconomics of economic integration & the economics of preferential trade agreement
Please review this material- it will not be covered in class.
Readings
**BW-2015: chapters 4-5.
**AN-2005: chapter 2.
2. The Single Market: The Essential Economics
Market size and scale effects
Growth effects and factor market integration
Migration
The EU Single Market
Readings
*AN-2005: chapter 3.
**BW-2015: chapter 6-8.
**Handouts # 1-2
**European Commission, 10 Years of the European Single Market, available at http://ec.europa.eu/internal_market/publications/docs/20years/achievements-web_en.pdf
**Presentation #1
Allen, C., Gasiorek, M. and Smith, A. (1998), European Single Market: How the programme has fostered competition, Economic Policy, 441-486.
Badinger, H., (2005). Growth Effects of Economic Integration: Evidence from the EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), 41(1),50-78.
Badinger, H., (2007). Has the EU's Single Market Programme Fostered Competition? Testing for a Decrease in Mark-up Ratios in EU Industries, Oxford Bulletin of Economics and Statistics, 69(4), 497-519.
Baldwin, R. E. & Forslid, R-, (2000),. Trade liberalisation and endogenous growth: A q-theory approach, Journal of International Economics, 50(2), 497-517, .
Clemente, J., Pueyo, F., Sanz, F., (2009), Market potential, European Union and growth, Journal of Policy Modeling, 31(5), 719-730.
Vanhoudt, P. (1999), Did the European unification induce economic growth? In search of scale effect and persistent changes Weltwirtschaftliches Archiv, 135 , 193--220
3. The Single Market: Location of Economic Activity and Policies
Location Theories
A workhorse tool for NEG and competition analysis in macro: the Dixit-Stiglitz Model
Agglomeration and dispersion forces
A simple footloose capital (FC) model
Labour market pooling
History v. Expectations
Special topics
Cohesion Policies
Readings
**BW-2015: chapter 10 (Annex 13.1** of the old edition)
**K-1991, pp. 29-33 (section: History versus Expectations, chapter 1), pp. 38-49 (section: Labor Market Pooling, chapter 2), Appendixes** B & C.
*GT-2013, chapter 16.
**Handouts 3-6
**Presentations #2-3
**Neary, J. Peter, (2001),. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
*Baldwin, Richard E. & Venables, Anthony J., (1995). "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier (selected sections).
*Baldwin, Richard E. & Krugman, Paul, (2004),. "Agglomeration, integration and tax harmonisation," European Economic Review, Elsevier, vol. 48(1), pages 1-23, February.
Dixit, A.K., Stiglitz, J.E., (1977) Monopolistic competition and optimum product diversity. American Economic Review 67 (3), 297--308.
Trionfetti, Federico (2001), "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
*Krugman, Paul, (1991), "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
*Krugman, Paul, (1991), "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
Annicchiarico, Barbara, Orioli, Federica &Trionfetti, Federico (2012), "National Oligopolies and Economic Geography",The Annals of Regional Science , 48(1), 2012.
*Mankiw, N Gregory & Romer, David & Weil, David N, 1992. A Contribution to the Empirics of Economic Growth", The Quarterly Journal of Economics, vol. 107(2), pages 407-37, available here.
5. Structural Reforms I: Fostering Growth through Competition Policies
Internal Markets
Labour markets
Readings
**BW-2015 chapter 11.
** BAG-2010 chapter 7 + **Handouts 7-8
BCFG-2006: chapters 2., **6.
**Presentations #5-7
** Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects Of Regulation And Deregulation In Goods And Labor Markets," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 879-907, August
AH-2009: Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
AN-2005: Altomonte, Carlo and Nava, Mario (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
BAG-2010: Blanchard, O., Amighini A., Giavazzi F., (2010), Macroeconomics, A European Perspective, first edition, Pearson.
BW-2015: Baldwin, Richard and Wyplosz, Charles (2015), The Economics of European Integration, 5th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
BSiM-2004: Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
BCFG-2006: Boeri, Tito,Castanheira, Micael, Faini, Riccardo and Galasso,Vincenzo, (2006), Structural Reforms without Prejudices, Oxford University Press.
GT-2013: Gandolfo Giancarlo, Federico Trionfetti (2013), International Trade Theory and Policy, Springer.
K-1991: Krugman Paul (1991) Geography and Trade, The MIT Press.
Jones-2013 Jones, C.I. (2013), Introduction to Economic Growth, W. W. Norton & Company.
Romer2011: Romer David (2011) Advanced Macroeconomics, The Mcgraw-Hill Series in Economics.
The course outline and the reading list regarding the I part of this course, "Economics of European Integration" is available here.
11. The microeconomics of economic integration* & the economics of preferential trade agreement*
12. The Single Market: The Essential Economics
13. The Single Market
14. Economic Convergence in the EU
15. Structural Reforms I: Fostering Growth through Competition Policies
16. Structural Reforms II: Fostering Growth through Knowledge Creation and Human Capital Accumulation
17. Structural Reforms III: Pension Reform
18. The Common Agricultural Policy
19. Europe 2020 Reform Strategy
* Please review this material. It wil not be covered in class.
READINGS
Various Papers, Reports, Lecture Notes, Presentations (available on this course website at the page: Materials (Materiale didattico)
Main reference book:
Baldwin, R. and Wyplosz, C. (2012), The Economics of European Integration, 4th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
Selected chapters from:
Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
Allen, F., Carletti, E., Simonelli, S. (2012), Governance for the Eurozone: Integration or Disintegration?, FIC Press.
Altomonte, C. and Nava, M. (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
Blanchard, O., Amighini A., Giavazzi F., (2013), Macroeconomics, A European Perspective,2nd edition, Pearson.
Boeri, T.,Castanheira, M., Faini, R. and Galasso,V., (2006), Structural Reforms without Prejudices, Oxford University Press.
De Grauwe P. (2012), The Economics of Monetary Union, 9th edition, Oxford University Press.
Gandolfo G., Federico T. (2013), International Trade Theory and Policy, Springer.
Krugman P. (1991) Geography and Trade, The MIT Press.
Handa, J. (2008), Monetary Economics, Routledge; 2 edition.
Jones, C.I. (1997), Introduction to Economic Growth, W. W. Norton & Company.
Romer, D. (2011), Advanced Macroeconomics, McGraw-Hill/Irwin; 4 edition.
11. The microeconomics of economic integration* & the economics of preferential trade agreement*
12. The Single Market: The Essential Economics
13. The Single Market
14. Economic Convergence in the EU
15. Structural Reforms I: Fostering Growth through Competition Policies
16. Structural Reforms II: Fostering Growth through Knowledge Creation and Human Capital Accumulation
17. Structural Reforms III: Pension Reform
18. The Common Agricultural Policy
19. Europe 2020 Reform Strategy
* Please review this material. It wil not be covered in class.
READINGS
Various Papers, Reports, Lecture Notes, Presentations (available on this course website at the page: Materials (Materiale didattico)
Main reference book:
Baldwin, R. and Wyplosz, C. (2012), The Economics of European Integration, 4th edition, McGraw Hill. This book represents an ESSENTIAL READING for this course.
Selected chapters from:
Aghion, P., and P. Howitt (2009), The Economics of Growth, MIT Press.
Allen, F., Carletti, E., Simonelli, S. (2012), Governance for the Eurozone: Integration or Disintegration?, FIC Press.
Altomonte, C. and Nava, M. (2006), Economics and Policies of an Enlarged Europe, Edward Elgar.
Barro, R.J., and Sala-i-Martin, X. (2004), Economic Growth, MIT Press.
Blanchard, O., Amighini A., Giavazzi F., (2013), Macroeconomics, A European Perspective,2nd edition, Pearson.
Boeri, T.,Castanheira, M., Faini, R. and Galasso,V., (2006), Structural Reforms without Prejudices, Oxford University Press.
De Grauwe P. (2012), The Economics of Monetary Union, 9th edition, Oxford University Press.
Gandolfo G., Federico T. (2013), International Trade Theory and Policy, Springer.
Krugman P. (1991) Geography and Trade, The MIT Press.
Handa, J. (2008), Monetary Economics, Routledge; 2 edition.
Jones, C.I. (1997), Introduction to Economic Growth, W. W. Norton & Company.
Romer, D. (2011), Advanced Macroeconomics, McGraw-Hill/Irwin; 4 edition.
Prof.ssa Lucia Leonelli
