Week 1 through 10: Microeconomics, see 11.203
(Microeconomics Ends; Planning Economics Begins)
Planning Economics, required of all students, is a more multi-discipline module which begins with an economic treatment of a subject and then presents a non-economist talking about a specific application/problem.
Week 11: Theory = Public Goods and Externalities
Application = Use of zoning to achieve particular ends in a Massachusetts suburb. Example taught by a faculty member who had been the head planner for several suburban towns. Example focuses on difficulty of translating goals into regulations.
Week 12: Theory = Location Theory
The three papers combine to give a lively and accessible review of the major theories of why economic activity agglomerates, the role (if any) of information technologies of diffusing the activity, etc. This is also a chance to reintroduce monopolistic competition since locational differences are enough to turn otherwise identical producers into monopolistic competitors.
Application = The New York City budget situation. Case taught by the last city budget director under Rudy Giuliani. Emphasis is on how you think about dealing with the current deficit while minimizing those service cuts which will drive more business and middle class families out of the city, thereby deepening the problem.
Week 13: Theory = International Trade Theory
Application = Relevancy of International Labor Standards. Case taught by faculty member who has been active in NGO’s and other groups building networks that try to improve working conditions in foreign suppliers to Nike, Banana Republic, etc., through publicity, etc.
Week 14: Theory = Very Basic Investment Tools – NPV, IRR, etc.
Application = Evaluating a proposed building renovation project. Case taught by an adjunct faculty member who has a real estate finance practice. Assigned case consists of several pages of background, questions, and a spreadsheet with all the relevant information (and other information that is not relevant). Before class, students have to use the spreadsheet information to set up and perform the calculations required to answer the questions.