Recent developments in contract theory. Includes advanced models of moral hazard, adverse selection, mechanism design and incomplete contracts with applications to theory of the firm, organizational design, and financial structure.
This course is an advanced course in macroeconomics that seeks to bring students to the research frontier. The course is divided into two sections. The first half is taught by Prof. Ivn Werning and covers topics such as how to formulate and solve optimal problems. Students will study fiscal and monetary policy, among other issues. The second half, taught by Prof. George-Marios Angeletos, covers recent work on multiple equilibria, global games, and informational fictions.
Topics change from year to year. Most recent topics include: optimal fiscal and monetary policy; optimal capital taxation; time inconsistency and incentive incompatibility of optimal policies; redistribution and political economics; heterogeneous agents and incomplete markets; Real Business Cycle models and new-keynesian models; endogenous growth; aggregate fluctuations and propagation mechanisms; recursive methods and robust control in macro.
From a technical perspective, economics is the study of how various alternatives or choices are evaluated to best achieve a given objective. The domain of economics is the study of processes by which scarce resources are allocated to satisfy unlimited wants. Ideally, the resources are allocated to their highest valued uses. Supply, demand, preferences, costs, benefits, production relationships and exchange are tools that are used to describe and analyze the market processes by which individuals allocate scarce resources to satisfy as many wants as possible. This increasingly narrow focus is the domain of modern, “neoclassical,” microeconomic analysis. This approach is typical of most economists and is referred to as orthodox economics.
The five basic questions that are asked in the study of the allocation problem are: 1) What to produce? 2) How many to produce? 3) How to produce? 4) When to produce? 5) Who gets it? Provisioning should seek to understand the nature of wants or objectives. Provisioning is the process of framing the approaches to the allocation problem.
This class examines how and why twentieth-century Americans came to define the ŰĎgood lifeŰ through consumption, leisure, and material abundance. We will explore how such things as department stores, nationally advertised brand-name goods, mass-produced cars, and suburbs transformed the American economy, society, and politics. The course is organized both thematically and chronologically. Each period deals with a new development in the history of consumer culture. Throughout we explore both celebrations and critiques of mass consumption and abundance.
Analytic Techniques for Public Management and Policy was written with the hope that the techniques of psychometrics, econometrics, and the ever-increasing quality of quantitative research in the social sciences can be used effectively to engage in evidence-based research. The ultimate goal is to encourage public management and policy researchers to inform more effective governance.
" This course focuses on alternative ways in which the issues of growth, restructuring, innovation, knowledge, learning, and accounting and measurements can be examined, covering both industrialized and emerging countries. We give special emphasis to recent transformations in regional economies throughout the world and to the implications these changes have for the theories and research methods used in spatial economic analyses. Readings will relate mainly to the United States, but we cover pertinent material on foreign countries in lectures."
Develops facility with concepts, language, and analytical tools of economics. Covers microeconomics, macroeconomics, and international trade and payments. Emphasizes integration of theory, data, and judgment in the analysis of corporate decisions and public policy, and in the assessment of changing US and international business environments. Restricted to Sloan Fellows. The fact of scarcity forces individuals, firms, and societies to choose among alternative uses -- or allocations -- of its limited resources. Accordingly, the first part of this summer course seeks to understand how economists model the choice process of individual consumers and firms, and how markets work to coordinate these choices. It also examines how well markets perform this function using the economist's criterion of market efficiency. Overall, this course focuses on microeconomics, with some topics from macroeconomics and international trade. It emphasizes the integration of theory, data, and judgment in the analysis of corporate decisions and public policy, and in the assessment of changing U.S. and international business environments.
Applied Macro- and International Economics uses case studies to investigate the macroeconomic environment in which firms operate. The first half of the course develops the basic tools of macroeconomic management: monetary, fiscal, and exchange rate policy. The class discusses recent emerging market and financial crises by examining their causes and considering how best to address them and prevent them from recurring in the future. The second half evaluates different strategies of economic development. Topics covered in the second half of this course include growth, the role of debt and foreign aid, and the reliance on natural resources.
Surveys research which incorporates psychological evidence into economics. Prospect theory. Biases in probabilistic judgment. Self-control and mental accounting with implications for consumption and savings. Fairness, altruism, and public goods contributions. Financial market anomalies and theories. Impact of markets, learning, and incentives. Some evidence on memory, attention, categorization, and the thinking process.
There are several hundred thousand Brownfield sites across the country. The large number of sites, combined with how a majority of these properties are located in urban and historically underserved communities, dictate that redevelopment of these sites stands to be a common theme in urban planning for the foreseeable future. Students form a grounded understanding of the Brownfield lifecycle: how and why they were created, their potential role in community revitalization, and the general processes governing their redevelopment. Using case studies and guest speakers from the public, private and non-profit sectors, students develop and hone skills to effectively address the problems posed by these inactive sites.
This is the first edition of the open text book Building a Competitive Investment Climate on First Nation Lands. This textbook is for students who are First Nation and tribal government employees or students who would like to work for or with First Nation and tribal governments. The purpose of this textbook is to help interested First Nation and tribal governments build a competitive investment climate. Work began on this text book in early 2012 with a generous grant from the Donner Canadian Foundation. Financial support was also provided by the First Nations Tax Commission and the Tulo Centre.
Uses a case approach to develop a framework for business analysis. Provides students with tools for business analysis, including strategic, accounting, financial, and prospective analysis. Concepts are then applied to a number of decision-making contexts, such as credit analysis, investor communications, merger analysis, financial policy decisions, and securities analysis. From the Course Description: Course Description The purpose of this class is to advance your understanding of how to use financial information to value and analyze firms. We will apply your economics/accounting/finance skills to problems from today's business news to help us understand what is contained in financial reports, why firms report certain information, and how to be a sophisticated user of this information.
The purpose of this course is to trace the twin paths of capitalism and democracy through American history. This course is premised on the idea that capitalism and democracy are intertwined, though they have often conflicted with one another. It provides students with a brief introduction to the history of capitalism and democracy in Europe and then to explore how they evolved in North America between 1600 and the present. Upon successful completion of this course, students will be able to: define and identify the terms 'capitalism' and 'democracy' in a variety of different modern historical eras; identify and define the historical connections between capitalism and democracy and identify periods of tension between capitalism and democracy, explaining how they both strengthen and weaken one another; identify important events, personalities, and concepts related to American democracy and capitalism; identify and describe the emergence and development of both capitalism and democracy in the United States; identify and describe the different periods of American history as they relate to the concepts of capitalism and democracy. (History 312)
Subject addresses the evolution of the modern capitalist economy and evaluates its current structure and performance. Various paradigms of economics are contrasted and compared (neoclassical, Marxist, socioeconomic, and neocorporate) in order to understand how modern capitalism has been shaped and how it functions in today's economy. Readings include classics in economic thought as well as contemporary analyses. Subject stresses general analytic reasoning and problem formulation rather than specific analytic techniques. May not be used for economics concentration. One economics HASS-D subject may be used as an economics elective for the economics major and minor. This course examines the implications of economic theories for social and political organization in the context of the historical evolution of industrial societies. Among the authors whose theories will be discussed are Ayn Rand, Milton Friedman, Karl Marx, Max Weber, Joseph Schumpeter, and John Kenneth Galbraith. Emphasis will be placed on class discussion of specific texts. Students will be encouraged to ground their views in concrete textual and empirical material and to consider the implications of different arguments for the understanding of personal, political, and economic events today.
This is a course for those who are interested in the challenge posed by massive and persistent world poverty, and are hopeful that economists might have something useful to say about this challenge. The questions we will take up include: Is extreme poverty a thing of the past? What is economic life like when living under a dollar per day? Why do some countries grow fast and others fall further behind? Does growth help the poor? Are famines unavoidable? How can we end child labor - or should we? How do we make schools work for poor citizens? How do we deal with the disease burden? Is micro finance invaluable or overrated? Without property rights, is life destined to be "nasty, brutish and short"? Has globalization been good to the poor? Should we leave economic development to the market? Should we leave economic development to non-governmental organizations (NGOs)? Does foreign aid help or hinder? Where is the best place to intervene?
Small-group study of advanced subjects under staff supervision. For graduate students wishing to pursue further study in advanced areas of urban studies and city and regional planning not covered in regular subjects of instruction. 11.941 and 11.955 are taught P/D/F.
Describes how economic theory is linked to economic evaluation techniques like cost-benefit and cost-effectiveness analysis and to introduce students to many concepts that are specific to economic evaluation. Introduces students to the many varieties of economic evaluation to establish a common terminology. Discusses cost-benefit with a demonstration of how this type of evaluation is most clearly linked to economic theory. Explores other theories and concepts, including cost measurement, benefit valuation, and incremental decision-making. Finally, explores recommendations on performing economic evaluations that are made in the United States with a focus on how these are related to underlying economic theory and other concepts.
The role of the family in human evolution, and as a symbol in our own social and political lives. Topics include: sex, marriage, and parenting; the labor market; class, race, and ethnicity; and the family's probable future. We begin by considering briefly the evolution of the family, its cross-cultural variability, and its history in the West. We next examine how the family is currently defined in the U.S., discussing different views about what families should look like. Class and ethnic variability and the effects of changing gender roles are discussed in this section. We next look at sexuality, traditional and non-traditional marriage, parenting, divorce, family violence, family economics, poverty, and family policy. Controversial issues dealt with include day care, welfare policy, and the "Family Values" debate.
This course emphasizes dynamic models of growth and development. Topics covered include: migration, modernization, and technological change; static and dynamic models of political economy; the dynamics of income distribution and institutional change; firm structure in developing countries; development, transparency, and functioning of financial markets; privatization; and banks and credit market institutions in emerging markets.
At MIT, this course was team taught by Prof. Robert Townsend, who taught for the first half of the semester, and Prof. Abhijit Banerjee, who taught during the second half. On OCW we are only including materials associated with sessions one through 13, which comprise the first half of the class.