Economics in the Public
and Nonprofit Sectors

UAPP693 -- Section 011 -- Fall 2011

Steven W. Peuquet, Ph.D.
School of Public Policy and Administration
298G Graham Hall
speuquet@udel.edu
302.831.1689


Individual student meetings with the instructor may be arranged via email. Students are always welcome to have informal conversations with the instructor before class starts, during class breaks, and after class.

A special thanks to Professor Eric Jacobson in the School of Public Policy and Administration who has taught this course for several years and who has been very generous in sharing his syllabus, course materials and experience with me.

Course Time and Location

This course meets from 6:00 pm to 9:00 pm on Wednesdays in 187 Graham Hall.

Course Prerequsites

This course requires familiarity with simple math techniques of algebra and graphing. Students who have some background in economics will find some of this course familiar, but there are benefits from reviewing the basics, and there is certain to be some material that is new. Students with extensive or recent preparation in intermediate microeconomics (covering indifference curves, isoquants, and market models) should consider enrolling instead in a more advanced course. Please feel free to speak with me about your specific interests and the courses available in SPPA, the Economics Department, and other units of the University for more advanced students.

Course Description and Learning Objectives

The goal of this course is to introduce you to the application of the principles of microeconomic analysis to policy questions and managerial decisions.  The course begins with the basics of supply and demand and market operations, and uses this as the context for considering consumer and organizational decisions within a given market structure (e.g., perfect competition vs. monopoly). The course builds to applying economic analysis to a variety of public issues such as the impacts of price controls, the effects of taxation, the structure of the housing market, and various approaches to environmental externalities. 

Upon successful completion of the course, students should be able to:

• Demonstrate an understanding of the basic language and models of economics and the tools of microeconomic analysis.  Knowing this language will help you to effectively communicate with others, and will serve you as a way to understand the world and/or as a point of reference for critiques of economic reasoning.
  
  
• Demonstrate an ability to apply the techniques of economic analysis to a variety of public sector situations and policy problems, through examples and problems drawn from the textbook and supplemental articles.  Sources include The Wall Street Journal, New York Times, and case studies, shared throughout the semester. Their purpose is to illustrate how the principles we discuss in class apply in everyday situations.  Supplemental readings will be made available electronically through this website.
  
  
• Demonstrate, using appropriate graphical analysis, the ability to deliver a reasoned, persuasive economic argument both orally and in writing
  
  
• Demonstrate the ability to progress to further graduate study requiring an understanding of basic microeconomics and its tools.  This familiarity with the language of economics and ability to apply (or criticize) the tools of economic analysis will provide a basis for your further citizenship as well as professional work in public policy and administration. 

Course Policies

For the benefit of all of us in class, please abide by the following simple rules:

• Arrive to class on time. Late arrival is discourteous to your instructor and classmates, and may
  cause you to miss important material.
• Cell phone use (of any kind – voice, text messages, calculators, photography…) is not allowed
  during class. Please turn them off completely or at least set them to manner mode.
• Do not bring food to class; beverages are fine.
• Ask questions and be thoughtful.
• Maintain a sense of humor and have fun.

Class Attendance and Participation

The class sessions will be modified lecture format. I will lecture but will also ask frequent questions, so you should come to class prepared.  We will cover a considerable volume of material in class, and you may find it difficult to catch up if you do not attend class. A portion of your grade (see below) will be based on class participation, so, obviously, if you're not in class you can't participate.

Your thoughtful contributions to the class discussion will enhance the learning experience for you and your classmates.  Students may contribute to the class best by asking and answering questions and participating in discussions in ways that demonstrate that they have read the assigned text material and assigned articles and have thought about the subject matter.  During class I encourage you to suggest possible applications to the public and nonprofit sectors.

Homework and Study Suggestions

I strongly believe that you cannot learn economics simply by reading the material. Students must think about what they are reading and work on problems. Probably the most effective way of learning is a four-step approach:

1. Start by scanning the study guide and reading new text material before it is covered in class.  Pay particular attention to new graphical tools and the “key concepts” listed at the end of the chapters.
   
2. Carefully review the text material covered in class. Some students find it helpful to rewrite class notes.
3. Then, complete the study guide questions and problems. Try to do the assigned problems without looking at solutions, but if you run into what seems to be insurmountable difficulties, look at the solutions. You will not do well on the examinations unless you master the study guide material and problems.
4. Meet with a study group on a regular basis to review.

If you find yourself struggling with a particular concept, don't hesitate to ask questions in class. You may also want to get (buy or borrow) another microeconomics textbook written by a different author and read about the same concept(s) in that book. Reading a different author who describes the same concept(s) using different words, exhibits and examples can be very helpful!

Academic Integrity

All students must be honest and forthright in their academic studies. To falsify the results of one’s research, to steal the words or ideas of another, to cheat on an exam or assignment, or to allow or assist another to commit these acts corrupts the educational process. Students are expected to do their own work and neither give nor receive unauthorized assistance. I vigorously support and aggressively enforce the University’s Code of Conduct as it pertains to academic dishonesty, and strongly recommend that each student review the University's Reference Guide to Academic Integrity which can be found at http://www.udel.edu/student conduct/ai.html. Consultation with other students on study guide material and exercises is fine.

There will be two (2) in-class quizes during the semester, one (1) in-class mid-term exam, and one (1) in-class final exam. The mid-term will cover all material up to that point in the course. The final exam will cover all material from the mid-term forward. There will also be three (3) out-of-class assignments. Your final course grade will be caluclated using the following weights:

Out-of-Class Assignments -- 5% each

Quizes -- 15% each

Class participation 5%

Mid-term exam -- 25%

Final exam -- 25%

The quizes and exams will consist of multiple choice, true/false and short answer questions. Except when there are serious extenuating circumstances that are beyond the student's control, out-of-class assignments that are handed in late will receive a lower grade.

September 7: Introduction

Read Chapters 1 & 2 in Mankiw

September 14: Supply & Demand Analysis 

Read Chapter 4 in Mankiw

September 21: Elasticities; Applications of Supply & Demand Analysis

Read Chapters 5 & 6 in Mankiw

September 28 and October 5: Consumer Theory

The first quiz will be on September 28th at the beginning of class. It will consist of a combination of true/false, multiple choice and short answer questions. Quiz will cover all assigned readings and material presented in class up to this point in the couse and will take no more than 1 hour. Remainder of the class will consist of lecture and discussion.

Read Chapter 21 first, then Chapter 20 in Mankiw. (These chapters will not be covered in the quiz.)

October 12: Externalities & Public Goods

 
Read Chapters 10 & 11 in Mankiw

Assignment #1 is now assigned, and is due (in hard copy) in class on Wednesday, October 19th.

October 19: Markets and Welfare (Consumer and Producer Surplus)

Read Chapters 7 & 8 in Mankiw

Assignment #1 due (in hard copy) in class

October 26 and November 2: Theory of Production and Costs and the Supply Decision

Read Chapter 13 in Mankiw

Mid-term Exam October 26

November 9 and 16: Theory of the Firm – Perfect Competition

Read Chapter 14 in Mankiw

Assignment #2 will be assigned on November 11, and is due (in hard copy) in class on Wednesday, November 16th.

November 16: Theory of the Firm – Monoply

Read Chapter 15 in Mankiw

Assignment #2 due (in hard copy) in class

Assignment #3 will be assigned on November 18, and is due (in hard copy) in class on Wednesday, November 30th.

November 23: Thanksgiving Break – No Class!

November 30: Theory of the Firm – Monopolistic Competition

Read Chapter 16 in Mankiw

Second Quiz

December 7: Theory of the Firm – Oligopoly

Read Chapter 17 in Mankiw

December 14: Final Exam (date and time not yet confirmed)

Required Texts for this Course

N. Gregory Mankiw (2011). Principles of Microeconomics, 6th Edition (ISBN: 978-0-538-45304-2). Mason, OH: South-Western Cengage Learning.

David R. Hakes (2009). Study Guide for Principles of Microeconomics by N. Gregory Mankiw, 5th Edition (ISBN: 978-0-324-59119-4). Mason, OH: South-Western Centage Learning.

Links to Additional Learning Resources

Additional learning resource to be added periodically.

University of Delaware