Teaching
University of Iceland, Department of Economics
Fall semester 2011
HAG513M: Economic Systems (undergraduate/graduate level)
Economic analysis often treats the firm, the market, and the economic system as standardized parameters. In this course, economic organization, and the evolution of industries and other social systems are the main topics of study. Economic systems change-for instance, industrial revolutions occur-and, at any point in time, the organization of industry varies between countries. And, new technology requires changes in organization. The course is in three parts. In the first part, we introduce various theoretical concepts such as the economics of property rights and the impact of transaction costs on the structure of firms and the nature of contracts. We also discuss how uncertainty, risk, politics, and ignorance limit reforms. The second part of the course deals with the origins and evolution of modern market societies in Western Europe and examines the underlying social mechanisms that keep the market system going. We also look at the forces that cause some countries to be less developed than others. The final section of the course examines the new high-tech or knowledge society and analyzes how new technologies, such as those associated with computers and the life sciences, impact the structure of property rights, the nature of firms, forms of contracting, the cost of transacting, and the global distribution of industries. We also examine how the new technologies will in various ways affect our lives, for instance through new types of crime, changes in the workplace and in urbanization. Organization: There will be lectures once a week in September but twice a week in October. There are no lectures in November but the students use the month to write an essay, which is due on 30 November. Those who turn their essay in late will lose 0.2 points per day (the grade 8.0 becomes 7.8, etc.). There will be a final examination in December. Note that in September and October the students are expected to come prepared to class and able to discuss the assigned material. Prerequisites: One year of economics and statistics (preferably two courses in microeconomics). Teacher evaluation. Not more than 15 students. Assessment: Course participation (10%), research essay (30%), final examination (60%)
SyllabusOffice hours: by appointment