USP 615 Winter 2016 Course Syllabus

Transcription

1 USP 615 ECONOMICS OF POLICY ANALYSIS WINTER 2016 Professor: Jenny H. Liu, Ph.D. Office: URB 370F OH: W 2pm 3pm and by appointment Course Website: Required Textbook You are not required to purchase a textbook for the course. Assigned reading materials and lecture notes will be posted on the course website (D2L). Because contemporary events may be incorporated in this course, not all reading materials will be available at the commencement of the course. Recommended Textbooks Mankiw. Principles of Microeconomics. Cengage, any recent edition. Particularly recommended for students without prior economics background Friedman. The Microeconomics of Public Policy Analysis. Princeton University Press, Bellinger. The Economic Analysis of Public Policy. Routledge, Course Objective This course is designed to expose doctoral students to economic theory and analysis as they are applied to public policy issues, including resource scarcity, consumer theory, welfare economics, efficiency, equity, market failure and cost-benefit analysis. You will learn to identify the relevant economic applications to your area(s) of policy interest, to comprehend the economic principles and arguments that bear on these issues, and to evaluate these issues utilizing economic tools and criteria. These objectives are achieved by developing microeconomic modeling skills in the context of a wide variety of public policy issues. Grading & Exams Date Time Option #1 Option #2 Midterm Exam 02/17 (W) 3:00pm 4:30pm 15% 25% Final Exam (take home) 03/18 (F) By noon 20% 35% Class Presentation 25% 25% Class Participation 15% 15% Policy Paper 03/18 (F) By noon 25% -- Your grade will be based on your performance on the exams, class presentations, class participation and policy paper (optional). Exam dates are indicated in the above table. Other due dates are listed in the course calendar below. Makeup exams will NOT be given unless there are extenuating circumstances and arranged well in advance with the instructor. 1

2 Class Participation Each student is required to attend and participate in class through listening, adequately preparing for class, providing quality contributions and actively participating in discussions. Class Presentations One presentation on a public policy topic of your choice is required in a group of 2. The group should be prepared to present for minutes and to lead a discussion session for about 20 minutes. The presentation should include background information on the policy issue, discussion of applicable economic principles or arguments, and propose a general evaluation plan to evaluate the outcomes of the policy element. Your presentation will be evaluated on content, organization and communication. Presenters: One week before the scheduled presentation, you should provide at least 2 pertinent articles from economics and evaluative literature along with discussion questions. Please post the articles and questions to the discussion board on D2L. Rest of class: In order to constructively engage in discussion, you are required to read the posted papers, and prepare a list of at least 3 main learning points and 3 discussion questions (or responses to questions from the presenter) on the topic. Policy Paper (Option #1) If you choose grading Option #1, you are required to turn in a page paper (Times New Roman 12-point font; single-spaced; 1-inch borders) on a public policy issue utilizing economic principles and analysis. The topic may be an extension of your class presentation, but must include substantial analysis and/or evaluation of the issue. You are required to submit a 2 page outline of your paper (Dropbox on D2L) by February 24 (Week 8) if you choose this option, addressing the topic, importance of the topic, key issues, data/information, methodology and bibliography. Please consult with me either via or in person before submitting your outline. 2

3 USP 615 Course Calendar (* indicates optional readings) Week 1 (01/06) & Week 2 (01/13) & Week 3 (01/20) Introduction & Microeconomic Foundations 01/13 NO CLASS Prepare for presentations & readings Friedman Chap 3: Utility Maximization, Efficiency, and Equity Bellinger Chap 3: A review of markets and rational behavior Cancian, M., & Meyer, D. R. (2004). Alternative measures of economic success among TANF participants: Avoiding poverty, hardship, and dependence on public assistance. Journal of Policy Analysis and Management, 23(3), Week 4 (01/27) & Week 5 (02/03) & Week 6 (02/10) Tools for Economic Policy Analysis 02/03 Presentations: #1 & #2 02/10 Presentations: #3 & #4 Application Minimum wage & employment Card, D., & Krueger, B. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review, 84(4), Doucouliagos, H., & Stanley, T. D. (2009). Publication Selection Bias in Minimum Wage Research? A Meta Regression Analysis. British Journal of Industrial Relations, 47(2), *Diaz, J. J., & Handa, S. (2006). An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator Evidence from Mexico s PROGRESA Program. Journal of human resources, 41(2), Cost-Benefit Analysis Boardman et al. Chap 1: Introduction to Cost-Benefit Analysis Hahn, R. W., & Tetlock, P. C. (2008). Has economic analysis improved regulatory decisions?. The Journal of Economic Perspectives, 22(1), *U.S. Environmental Protection Agency. (2000a). Guidelines for Preparing Economic Analyses. Report 240-R Washington, DC: Office of the Administrator, USEPA. Viscusi, W. K., & Gayer, T. (2002). Safety at any price?. Regulation, 25(3). Kling, C. L., Phaneuf, D. J., & Zhao, J. (2012). From Exxon to BP: has some number become better than no number?. The Journal of Economic Perspectives, 26(4), *Hahn & Wollsten (2003). Is Granny worth $2.3 million or $6.1 million? Economic Impact Analysis Bellinger Chap 11: Economic impact analysis *Weisbrod & Weisbrod (1997). Measuring Economic Impacts Of Projects And Programs. Economic Development Research Group. Week 7 (02/17) Taxation: Incidence and Efficiency *** Midterm Exam 3:00pm 4:30pm *** Gruber Chap 19: The Equity Implications of Taxation: Tax Incidence Gruber Chap 20: Tax Inefficiencies and Their Implications for Optimal Taxation *Doyle & Samphantharak (2008). $2.00 Gas! Studying the effects of a gas tax moratorium. Journal of Public Economics, 92(3),

4 Week 8 (02/24) Application: Externalities & solutions 02/24 Paper Outline (optional) due 02/24 Presentations: #5 & #6 Application: Pollution control policy Metcalf (2009). Market-Based Policy Options to Control U.S. Greenhouse Gas Emissions, Journal of Economic Perspectives, 23(2): Liu, J.H. and Renfro, J. (2013) Carbon Tax and Shift: How to make it work for Oregon s Economy, Northwest Economic Research Center (NERC) Report. Krugman (2012). Building a green economy, New York Times, 5 Apr Week 9 (03/02) & Week 10 (03/09) Application: Social insurance & redistribution 03/02 Presentations: #7 & #8 Social Insurance Congressional Budget Office (2001). Social Security: A Primer. Feldstein, M. (2005). Rethinking Social Insurance. The American Economic Review. *Diamond, P. A., & Orszag, P. R. (2005). Saving social security. The Journal of Economic Perspectives, 19(2), Cogan, J. F., & Mitchell, O. S. (2003). Perspectives from the president's commission on social security reform. The Journal of Economic Perspectives, 17(2), Health Insurance White House Council of Economic Advisers (2013). Trends in health care cost growth and the role of the affordable care act. Friedman Chap 7: Uncertainty and Public Policy Take Home Final Exam due 03/18 noon Due: Optional Policy Paper (due 03/18 noon) 4

5 POLICIES Affirmative Action Portland State University supports equal opportunity for all, regardless of age, color, disability, marital status, national origin, race, religion or creed, sex or gender, sexual or gender identity, sexual orientation, veteran status, or any other basis in law. Academic Misconduct Policy You are expected to display academic integrity and honesty. Cheating, fraud or plagiarism will be dealt with according to the Portland State Student Code of Conduct ( which could lead to failing the course or expulsion from the University. ADA Accommodation Students with accommodations approved through the Disability Resource Center are responsible for contacting the faculty member prior to, or during, the first week of term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval should contact the DRC immediately. Calendar/Schedule Course calendar is tentative and is subject to change as the instructor deems appropriate. Please check online for any updates. 5