Junior Lecturer in Economics, Kemmy Business School, University of Limerick, Ireland.
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Posts from — September 2006

EC4333 Lecture 1

Just right click on the link and choose “Save Target As”.

[Download EC4333_Lecture_1_handout.pdf]

September 26, 2006   1 Comment

Lots of Full Text Economics Classics

http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/

This archive is an attempt to collect in one place a large number of significant texts in the history of economic thought. I have tried to cast my nets as wide as possible including representative texts of all of the major thinkers and schools of thought; and most of the sub-fields of economics. The archive is a work in progress that may never be completed. The field of economic thought is a very large one. The texts are posted primarily for the use of students who might not otherwise have access to these writings. They are to be used strictly for non-commercial educational purposes. There are mirror sites at the University of Bristol (maintained by Tony Brewer) and at the University of Melbourne (maintained by Robert Dixon). All complaints, suggestions, reports of errors should be sent to Rod Hay. There are as well, many other sites that might be of interest.

September 18, 2006   Comments Off

Software Carpentry (Version 1122)

Software Carpentry (Version 1122):

Version 1122 (Fri Sep 15 09:37:42 2006)

Overview

Many scientists and engineers spend much of their lives programming, but only a handful have ever been taught how to do this well. As a result, they spend their time wrestling with software, instead of doing research, but have no idea how reliable or efficient their programs are.

This course is an intensive introduction to basic software development practices for scientists and engineers that can reduce the time they spend programming by 20-25%. All of the material is open source: it may be used freely by anyone for educational or commercial purposes, and research groups in academia and industry are actively encouraged to adapt it to their needs.

September 18, 2006   Comments Off

Civilization Developed as Last Resort

Hmm.

“‘Civilisation did not arise as the result of a benign environment which allowed humanity to indulge a preference for living in complex, urban civilised societies,’ he told the annual meeting of the British Association for the Advancement of Science.

“‘On the contrary, what we tend to think of today as civilisation was an accidental by-product of unplanned adaptation to catastrophic climate change. Civilisation was a last resort,’ he added.’

TODO Re-read Jared Diamond, Guns, Germs and Steel for contrast.

[download paper]

Brooks-Beyondcollapse-Abs

September 12, 2006   Comments Off

EC4333 Economics of European Integration Course Pack

Click this link  to download the pack.EC4333 Course Pack.pdf This file is pretty big-2.6mb, so make sure you’re inside the campus network or on a fast connection before downloading.To save this file and print it out, right click and choose `Save Target As’ and save the file to your desired location for printing or whatever.

September 11, 2006   Comments Off

EC4333 Economics of European Integration Course Outline

Economics of European Integration

EC4333, Semester 1, 2006/7

Stephen Kinsella

Department of Economics,

Kemmy Business School,

University of Limerick

http://www.stephenkinsella.net

2006-09-04

Introduction

The years since 1945 have been the longest period since 113 B.C. in which no army has crossed the Rhine

with war-like intentions. The very idea of war between the European Union’s member States seems so

remote as to be nonsensical. The creation of the European Union (EU); a legal, political, economic,

cultural, and soon to be military entity, is one of the greatest economic experiments in the history of

Mankind. The shape and scope of the EU has the capacity to affect the lives of hundreds of millions of

people in different ways, some positive, some negative. Thus a careful study of this experiment is in

order.

This course is about using economics to understand the history of the EU, its significance in terms of the

post 1945 World Economy, its development up to today, and the prospects for change most likely in the

future. We have 24 contact hours. Each 2 hour block will be thematic, that is to say, this is

not a survey course in International Economics or naive Trade theory. Rather, this course

will focus on developing the appropriate models and conceptual frameworks to understand

a particular issue facing the EU today. The objective of the course is to inform potential

future policy makers of the issues at stake and equip them with the tools to analyze these

issues.

1.1

1.1  Grading

There will be a final exam worth 70% of your final grade, four bi-weekly problem sets worth 5% each

beginning in week 3, and an essay worth 10%.

Problem sets will be distributed in class, with each due the next class each week. The essay title

is

Briefly outline the development of the European Union from the end of World War II to

the present day. Discuss either the potential economic effects of the fifth enlargement,

enacted  in  May  2004,  on  Ireland’s  economy  or  discuss  the  role  of  the  Common

Agricultural Policy (CAP) in the constitutional negotiations of the early 2000s and

theorize as to how to overcome the stumbling block the CAP represents. Situate either

discussion in the context of the history of the EU to date.

Essays should be no longer than 10 A4 pages, typeset in Times New Roman font, size 11. Ensure you

reference all articles and data used. The essay will be due by the fifth week of term, no later than Monday,

23rd October.

1.2

1.2  Course Notes and Textbook

There is no one textbook for the course. Readings are taken from many textbooks, and all are

available online as a coursepack at http://www.stephenkinsella.net. Course notes and (hopefully) a

podcast of the lecture will be available from the site after each lecture. Attendance at lectures is

mandatory.

2

Course Outline

The lectures are not designed to fit into 2 hour slots: some will be longer—like the economics of Monetary

Union— and some will be shorter. Thus there are eleven lectures and a recap lecture at the end of the

course. All readings available in the library have their codes given in sans serif font to speed you in finding

them. Readings marked with a (*) will be distributed on a CD at the start of the class, and are available

as a single .pdf file from the course website.

Lecture One Introduction  to  the  course,  definition  of  ’economic  integration’,  history  of  the

institutions of the European Union to date. Readings: none

Lecture Two History of the EU to date continued, Institutional Analysis of the dynamic of European

integration and the stages of economic integration (customs union-common market-economic and

monetary union) especially the fifth enlargement and the Treaty of Rome. Structure of the EU.

Readings:

  • Beach, D., The Dynamics of European Integration, pgs. 1–31, and pgs. 214–244, 337.142
  • BEA.
  • El-Agraa, A.M., The European Union: Economics and Policies, 6th ed., pgs 1-19 and

    72-79, 337.142 AGR.
  • McDonald,  F.  and  Dearden,  S.  European Economic Integration,  3rd  ed.,  pgs  34-53,
  • 337.142 MCD.

Lecture Three Economic and Monetary Union, development of current policies and prospects for the

future. Models of Customs Unions for Product and Factor Markets and empirical results on levels of

integration across these markets Readings:

  • Pelkmans, J. European Integration: Methods and Economic Analysis 1st ed., pgs. 83–104

    and 133–155. 337.142 PEL.
  • El-Agraa, A.M., The European Union: Economics and Policies, 6th ed., pgs. 149–164,
  • 337.142 AGR.
  • Lane,  P.  (2006)  The  Real  Effects  of  EMU,  Journal  of  Economic  Perspectives,

    forthcoming. (*)

Lecture Four Economic and Monetary Union Continued, theories of Monetary Union. Readings:

  • Buiter, W.H. “The Economic Case for Monetary Union in the European Union”, in

    Deissenberg,  Owen  and  Ulph,  eds.  European  Economic  Integration,  published  as  a

    supplement to the Review of International Economics, Vols. 4-5., pgs. 10–35. 337.142
  • DEI.
  • Hansen, J.D., European Integration: An Economic Perspective, Oxford University Press,

    2001, 1st ed. pgs. 163-189, 337.142 DRU.
  • Healey, N. ‘Economic and Monetary Union’, in McDonald, F. and Dearden, S. European
  • Economic Integration, 3rd ed., pgs. 94–114, 337.142 MCD.
  • Wyplosz, C. ‘European Monetary Union: The Dark Sides of a Major Success’, Economic
  • Policy, 2006 (*)

Lecture Five The Common Agricultural and Fisheries Policies, history, theory, and analysis.

Readings:

  • El-Agraa, A.M., The European Union: Economics and Policies, 6th ed., pgs. 232–261,
  • 337.142 AGR.
  • Pelkmans,  J.  European  Integration:  Methods  and  Economic  Analysis  1st  ed.,  pgs.

    164–182. 337.142 PEL.

Lecture Six Competition Policies, Regional Policies and Environmental Policies in the EU.

  • El-Agraa, A.M., The European Union: Economics and Policies, 6th ed., pgs. 388-399

    and 187-199, 337.142 AGR.
  • Pelkmans,  J.  European  Integration:  Methods  and  Economic  Analysis  1st  ed.,  pgs.

    164–182. 337.142 PEL.

Lecture Seven Economic Inequality across the EU.

  • Michie, J., ‘Unemployment in Europe’, in Amin and Tomaney, eds. Behind the Myth
  • of European Union: Prospects for Cohesion, Routledge Press, 1995, pgs. 51–82. 337.14
  • AMI.
  • Jensen,  S.  E.  H.  “Wage  Rigidity,  Monetary  Integration  and  Fiscal  Stabilisation  in

    Europe”, in Deissenberg, Owen and Ulph, eds. European Economic Integration, published

    as a supplement to the Review of International Economics, Vols. 4-5., pgs. 36-54. 337.142
  • DEI. (Note, this is a hard paper, but students who know calculus should attempt it.)
  • Bertola,  G.  ‘Europe’s  Unemployment  Problems’,  in  Artis  and  Nixson,  eds.  The
  • Economics of the Europen Union, 3rd ed., pgs. 353–381.

Lecture Eight Enlargement: Factor Mobility and Political Economy of accession to the

EU.

  • Estrin, S. and Holmes, P. Competition and Economic Integration in Europe, pp. 1–22.
  • 337.142 EST
  • Smith,  E.  ‘EU  Competition  Policy  Without  Membership:  Lessons  for  the  European

    Economic Area’, in Estrin, S. and Holmes, P. Competition and Economic Integration in
  • Europe, pgs. 48–60. 337.142 EST
  • Willem H. Buiter and Anne C. Sibert, ‘Eurozone Entry of New EU Member States from

    Central Europe: Should They? Could They?’ (*)

Lecture Nine Location Effects, Regional and Industrial Policy. Deeper EU integration may have

significant implications for the economic activity of member states. Changing trade relations,

increasing competition, and the increased mobility of goods, services and people will all

affect the location of industries across the EU. How should member states and the EU

react? Can an active industrial policy be justified? What form should regional policy

take?

  • Puga, D., ‘European regional policy in light of recent location theories’, Journal of
  • Economic Geography 2(4), October 2002: 372-406 (*)
  • Puga, D. ’The rise and fall of regional inequalities’, European Economic Review 43(2),

    February 1999: 303-334.(*)

Lecture Ten International Trade, Tariffs, and Globalization. The EU is the largest trading bloc in the

world. What are the effects one might expect from a economic entity as large as the EU changing its

trade-tariff policies?

  • Stiglitz, J.E., and Greenwald, B. Helping Infant Economies Grow: Foundations of Trade

    Policies for Developing Countries, American Economic Review, Papers and Proceedings,

    May 2006. (*)
  • Shaikh,  Anwar,  Globalization  and  the  Myth  of  Free  Trade.(2003)  Prepared  for  the

    Conference on Globalization and the Myths of Free Trade, New School, NYC.(*)

Lecture Eleven The Eu and Ireland. Ireland is the poster-child for the benefits of accession to the EU.

Other small open economies have not done so well. What does continued membership of the EU

mean for Ireland today?

  • Barrett, A., Bergin, A., and Duffy, D. ‘The Labour Market Characteristics and Labour

    Market Impacts of Immigrants in Ireland The Economic and Social Review, Vol. 37, No.

    1, Spring 2006.
  • McAleese,  D.  ‘Policy  Objectives  and  Competitiveness  for  a  Regional  Economy’,  in

    O’Hagan  and  Newman,  eds.  The Economy of Ireland: National and Sectoral Policy
  • Issues, 9th ed., pgs. 2–28. 330.94178024 OHA

Lecture Twelve Recap lecture. Readings: All of them!

September 11, 2006   78 Comments

EC3601 Course Outline

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UNIVERSITY OF LIMERICK

KEMMY BUSINESS SCHOOL

DEPARTMENT OF ECONOMICS

 

International Political Economy 1

EC6101

Course Outline and Reading List

AUTUMN SEMESTER 2006/2007

 

Lecturers:                      Dr
Anthony Leddin and Stephen Kinsella

                                   

External Examiner:        Professor
Eamon O’Shea, NUI (University College, Galway)

 

The purpose of
this course is to introduce the student to the principles underlying the
macroeconomy.  This is the study of
how aggregate economic variables such as, the real growth rate, inflation and
unemployment, behave and how the government and central bank might influence
their behaviour.  The latter part
of the course is concerned with three issues in macroeconomic theory and
policy:  (1) The “Celtic Tiger”
economy and the recent performance of the Irish economy, (2) Ireland in
European Monetary Union (EMU) and the economic performance of EMU and (3)
globalisation.

 

As part of this course, students are required to
submit a project based on econometric analysis.  The titles are given by the lecturer and the class will be
divided into project groups of 4 to 5 students (depending on class size).  The project will account for 40% of the
final mark.

 

The reference book is:

Leddin, Anthony and Brendan M.
Walsh, The Macroeconomy of the Eurozone.  Gill and Macmillan, 2003.

 

Students should
also consult the following books for certain sections of the course:  (listed edition or more recent).

 

Blanchard, O., Macroeconomics,  Third
edition, Prentice Hall, 2003.

Taylor, L. Reconstructing
Macroeconomics, Harvard University Press, 2004.

De Grauwe, Paul,  The Economics of Monetary
Integration,
Oxford University Press, 5th
edition, 2004.

D. Gujarati, Basic Econometrics, McGraw Hill, 4th  edition, 2003. 

Eiteman, David, Arthur Stonehill
and Michael Moffett, Multinational Business Finance, Addison Wesley, 10th edition, 2004.

Newman, C. & O’Hagan, J. The Economy of
Ireland, 9th Edition National & Sectoral Policy Issues
, Gill & MacMillan, 2005

 

 

The Basic Model

 

September, 27.   Introduction
(AL)

            GNP,
business cycle, unemployment, inflation. Policy constraints.

            L
& W Ch. 1.

 

September 28 & 29. Theory of Income Determination:  Basic Model  (AL)

The aggregate
supply and demand model:  Three
issues:  1.  Demand and supply-side shocks.  2.  Okun’s law. 
3.  Natural real GNP and automatic
adjustment mechanisms. 

            L
& W Ch. 2 and 3

 

October 18.       Fiscal
Policy (Hereafter SK)

            Stabilisation
policy and the Washington consensus, fiscal policy in Ireland, past and
present.

            L
& W Ch. 4, and 5

            Barrett
et al, eds. ESRI Quarterly Commentary

            CSO.ie,
various reports to be distributed in class.

            IMF
and OECD Country Reports for Ireland.

           

October 19.       Project

Econometrics:  An Introduction to Regression Analysis
with Microsoft Excel

Regression
analysis, data sources and econometric software packages. 

Theory:  e.g.
Gujarati, Damodar. - Basic Econometrics – 4th ed. - New York : McGraw Hill, 2003. 

            Short
Loan 330.015195/GUJ

Software: Microsoft Excel, Data Analysis Package. Useful
Tutorials are available at http://helios.bto.ed.ac.uk/bto/statistics/tress11.html and http://phoenix.phys.clemson.edu/tutorials/excel/regression.html

.

October 20.       Money
and Banking, the Quantity Theory of Money and Interest Rate Determination

            Money;  functions, creation and control.  European Central Bank.  Inserting the money market into the      AD/AS model.

            L
& W Ch. 6 and 7.

Taylor,
pgs 79-93.

 

November 15.    The
Balance of Payments and Exchange Rate Theory (SK)

            Foreign
exchange market, flexible exchange rates, real exchange rates, trade-weighted
exchange rate            index,
Central Bank intervention, external reserves, fixed exchange rates.  Inserting the foreign      exchange market into
the AS/AD model.

            L
& W Ch. 9, 10 and 11.

 

November 16.    Purchasing power parity.   (SK)

            Absolute
and relative PPP.

            Burgernomics,
http://research.stlouisfed.org/ publications/review/03/11/pakko.pdf  and       www.economist.com/markets/bigmac/index.cfm

            L&W,
Chapter 10. 

 

November 17.    Covered and uncovered
interest rate parity theory and the Fisher equation.  (SK)

            L&W,
Chapters 10 and 8.

 

November 17.    Open Economy Monetary Model.
(SK)

            L&W,
Chapters 10 and 12.            

            Lane,
Philip, The New Open Economy Macroeconomics, A Survey. Available at http://www.tcd.ie/Economics/TEP/1999_papers/TEPNo3PL99.pdf

 

Three Major Topics

 

December 6.       The
Economic Performance of the Irish Economy in the Long-run, the “Celtic Tiger”
and recent      economic
performance.

            L&W,
Chapter 24.

 

December 7.       Why
Ireland joined EMU and the economic performance of the EMU economy.

            L
& W Chapter 14.

            De
Grauwe, Chapters 2 & 3.

 

December 8.       Globalisation

            Benefits and costs. Global
inequality and poverty. Role of the IMF and World Bank.

            Additional
reading
:  Joseph Stiglitz, "Globalization
and its Discontents", Penguin Books, 2002. and, J. E. Stiglitz, Fair
Trade for All: How Trade Can Promote Development
(Initiative for Policy Dialogue Series C) (Hardcover), 2006.

            Guest
speaker :  Dr Donal Donovan, IMF,
Washington D.C.

 

 

September 11, 2006   2 Comments

Against Intellectual Monopoly

Against Intellectual Monopoly:

Economic and Game Theory

Against Intellectual Monopoly

by Michele Boldrin and David K. Levine

top | general | research | classes | links | David “Monopoly corrupts, absolute monopoly corrupts absolutely.”

[new version November 11, 2005]

It is common to argue that intellectual property in the form of copyright and patent is necessary for the innovation and creation of ideas and inventions such as machines, drugs, computer software, books, music, literature and movies. In fact intellectual property is not like ordinary property at all, but constitutes a government grant of a costly and dangerous private monopoly over ideas. We show through theory and example that intellectual monopoly is not neccesary for innovation and as a practical matter is damaging to growth, prosperity and liberty.

Chapter 1: Introduction

Chapter 2: Creation Under Competition

Chapter 3: How Competition Works

Chapter 4: Innovation Without Patents

Chapter 5: The Intellectual Monopoly Apologists

Chapter

September 11, 2006   Comments Off