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Program

Updated A.Y. 2022-2023

Master of Science in European Economy & Business Law

Economic Integration  & Structural Reforms

 

Academic Year 2022-2023

 

Lecturer: Prof. Barbara Annicchiarico

Teams link: Click here

E-mail address: barbara.annicchiarico@uniroma2.it

E-mail policy: See here

Office Hour: I haven't an open-door policy. Please respect office hours. Check here

Credits - CFU: 6

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 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 structural reforms.

Prerequisites

Students are expected to be familiar with basic microeconomic and macroeconomic concepts and models, and with elements of public economics and game theory. A quantitative background is not strictly required, but students will benefit from the knowledge of mathematics and statistics. The course is held in English.

Learning outcomes

Deep understanding of the economic integration process on growth, competition, the 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, innovation, and human capital accumulation as engines of growth; understanding of the common agricultural policy; understanding and critical evaluation of the objectives of the EU growth policies.
Learning an analytical and quantitative approach for economic analysis so as to strengthen what is already learned during the first cycle and be able to apply these tools in an innovative way, also in research contexts. 

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.

Applying knowledge and understanding

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 judgments 

What is learned can be used to assess critically and without prejudices: i) the activity and the decisions of national and European policymakers; ii) the reforms on the agenda. Students will be able to understand novel and complex problems related to the process of economic integration and speculate on future evolutions of the EU.

Communication skills

Be able to rigorously present facts and complex mechanisms; learn how to present complex facts and economic mechanisms in a comprehensive manner and communicate the relative conclusions, knowledge, and rationale to specialists and non-specialized audiences. 

Learning skill

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.  
Special attention will be given to helping students develop their soft skills, such as flexibility, integrity and work ethic, positive attitude, responsibility, teamwork, and interpersonal skills.

Exams

Written and oral examination of all course contents. More details are provided here

Grading policy and assessment method

Please note that a final 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 students from getting 30/30 as final grade, no matter if students feel they are 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 your performance. It is not possible to submit extra work in an attempt to improve a grade. More details are provided here

 

Zero tolerance for 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.

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.

  • Punctuality is mandatory, even if the course will be held online.

 


 

Preliminary Syllabus

15th July 2022 

IMPORTANT: This syllabus will be subject to changes and updates during the course. 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 backgrounds. Please check this syllabus on a regular basis for any updates.

Please notice that

  • Starred (*) readings are required and can be objects of examination. 

  • Other readings are optional and are provided for your interest and benefit. These readings will not be objects of examination. 

1. Basic Tools

  • Logarithms

  • Derivative w.r.t. time

  • Growth Rates

Preliminary Readings

  • *Presentation Math_tools

2. History, Facts, and Institutions

Preliminary Readings

3. The Microeconomics of Economic Integration & The Economics of Preferential Trade Agreement

  • Basic microeconomic tools

  • Economics of preferential liberalization

Preliminary Readings

4. The Single Market: The Essential Economics

  • Market size and scale effects

  • The neoclassical growth model (The Solow model)

  • Growth effects and factor market integration - An analysis using the neoclassical growth model

  • Labour markets and migration

  • The EU Single Market

Preliminary Readings

  • *BW-2019: chapter 6* (Annex included), chapter 7* and chapter 8*

  • *JV-2013: chapter 2: only the introduction* and section 2.1*

  • *20 Years of the European Single Market, available here

  • *Presentations # 3, 4, 5, 6, 7

  • *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, .

  • Solow, R.M., 1956. A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), pp.65-94.

  • Video

  • Links

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

Preliminary 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.

  • *Presentations #8, 9, 10, 11(only main assumptions, implications and graphical analysis), 13 and Presentation Dixit Stiglitz Model
  • Presentation 12 
  • *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)

  • *Convergence of EU Regions: Measures and Evolution (only sections 2 and 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.

  • 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.

6. The Common Agricultural Policy and the EU Budget

  • The functioning of the CAP

  • CAP reform

  • Today's CAP

  • The EU budget

Preliminary Readings

  • *BW-2019: chapter 9 + *The effects of an export subsidy here

  • *BW-2019: chapter 2, section 2.7*

  • *Presentations 14-15

  •  European Commission (2013), Overview of the CAP Reform 2014-2020

  • *Have a look at the website: *CAP at a glance (with keywords!) here 

  • *Myths and Facts of the EU Budget here

  • *The EU budget here

7. Structural Reforms

  • Labour market reforms

  • Education and human capital

  • Product market

  • Structural reforms and austerity

Preliminary Readings

  • *Presentations #16, 17, 18

  • *Presentation on "Structural reforms and the debt_trap"
  • Presentation #19 

  • *OECD Going for growth: here
  • *Towards a European Education Area: here
  • *Padoan P.C, & van der Noord P. (2012) Is Austerity Going Too Far? Structural Reforms and The Debt Trap, chapter 8 of this book

  • BCFG-2006: chapters 2, 6

  • AN-2005: chapters 8 and 9 

8. Current Challenges and Prospects

  • Towards a sustainable Europe
  • Challenges

Preliminary Readings

 

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-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.

  • 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. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Books

  • 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.