Economics for Managers – MEB

Course outline: Economics for Managers (MEB) 2016/17

Course textbook:

Course handouts: download here (zip)

Problem set: you can either buy a hard copy or download it for free.

1. Demand

1a. Incentives matter*
Becker, Gary “The Economic Way of Looking at Life”, Nobel Lecture, December 9th 1992 (£)

1b. Course introduction

2. Supply

2a. Understanding cost*

2b. Cost curves*
La Marmotte, January 2012
Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

Video: “The Planning Horizon“, June 2016

3. Market equilibrium

3a. Market equilibirum (36)*
Video: “Comparative statics and the UK housing market

3b. Markets in everything
Warren, Georgia and Watts, Robert, “I’ve got debts, please buy my kidneys” The Times, September 27th 2009 (£)
Discussion question: What are some different ways in which we could allocate kidneys?

4. Price discrimination and asymmetric information

4a. Price discrimination*
An Economist’s Passage to India, February 2012
Instructions: Verify as much of the information in the case as possible

4b. Adverse selection

5. Applications I

5a. Prediction markets
Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School case no. 9-607-088, August 20th 2007 (£) / “Prediction Markets”, February 2016

5b. Problem set review (Micro)

6. Monetary policy

6a. Monetary Policy I*
Video: “An introduction to the Dynamic AD-AS model

6b. Monetary Policy II
“The Euro in Crisis: Decision Time at the European Central Bank” Harvard Business School case no. 9-711-049 (£) / The ECB During the Crisis, May 2016

7. Fiscal policy

7a. Fiscal Policy*

7b. Fiscal Policy (contd.)

8. International economics

8a. Foreign exchange
“Josko Joras (A)”, December 2012
Instructions: Complete exercises 1,2, and 3

8b. Currency crises
“Currency Crises” Harvard Business School case no. 9-799-088 (£)
Discussion question: Which countries are on the verge of a currency crisis?

9. Public finance and sovereign debt

9a. Public finance
“Rovna Dan: The Flat Tax in Slovakia”, Harvard Business School case no. 9-707-043, March 2010 (£) / Flat Tax in Slovakia, May 2016

9b. Debt crises
Blustein, Paul “And the Money Kept Rolling In” Public Affairs, 2005 (pp.39-60) (£)
Discussion question: As of July 1998 should the IMF suspend their program in Argentina, or continue their support?

10. Applications II

10a. Group presentations

10b. Problem set review (Macro)


Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.

Cases marked with a pound sign (£) are either available via Blackboard or through the library.