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2021/2022

Public Policies II

Code: 42733 ECTS Credits: 10
Degree Type Year Semester
4310025 Economics and Business Administration OT 0 2
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Alexandra Simon Villar
Email:
Alexandra.Simon@uab.cat

Use of Languages

Principal working language:
english (eng)

Other comments on languages

This master is taught and evaluated entirely in English.

Teachers

Pau Olivella Cunill
Emilio Padilla Rosa

Prerequisites

Fundamentals of Economics and Business I

Fundamentals of Economics and Business II

Objectives and Contextualisation

Environmental Policies

The aims of the subject are: To review the economic analysis of main environmental problems as well as the different environmental policy tools. To understand the relationship between economic, social and ecological systems. To study the analytical tools of the economics of the environment. To analyse the main current debates in the field.

 

Health Economics and Policy Analysis

The course will provide a broad overview of the field of health economics. It is designed to illustrate how economists analyze topics related to the production of health and the delivery of health care. We will focus on how microeconomics tools can be used to understand health-related decisions made by individuals, providers, and health authorities. It will also study the application of economics to health care policy, with a focus on how economic analysis can assist in the development of market and non-market solutions to various health care problems.

 

 

Competences

  • Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
  • Carry out empirical studies for impact assessments of different policies: Identify existing data sources or design a data collection, application of statistical and econometric techniques that are appropriate for programme and policy evaluation, formulation of empirical strategies and the appropriate interpretation of the results.
  • Carry out empirical studies.
  • Carry out oral presentations in the English language.
  • Contextualise economic problems through the use of formal models that enable quantitative analysis.
  • Demonstrate an understanding and carry out a critical analysis of economic studies of the economic policies of international organisations such as the OECD or the European Commission in the areas indicated.
  • Demonstrate an understanding of apply the main economic principles of efficiency and equity in the different areas mentioned above.
  • Identify specific cases among situations in which the markets are not efficient and those in which they are, as well as public intervention that leads to efficiency and that which does not.
  • Respect ethical, social and environmental values.
  • Understand academic research in the areas indicated.
  • Use different statistical programs to process data.

Learning Outcomes

  1. Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
  2. Carry out empirical studies for impact assessments of different policies: Identify existing data sources or design a data collection, application of statistical and econometric techniques that are appropriate for programme and policy evaluation, formulation of empirical strategies and the appropriate interpretation of the results.
  3. Carry out empirical studies.
  4. Carry out oral presentations in the English language.
  5. Contextualise economic problems through the use of formal models that enable quantitative analysis.
  6. Demonstrate an understanding and carry out a critical analysis of economic studies of the economic policies of international organisations such as the OECD or the European Commission in the areas indicated.
  7. Demonstrate an understanding of apply the main economic principles of efficiency and equity in the different areas mentioned above.
  8. Identify specific cases among situations in which the markets are not efficient and those in which they are, as well as public intervention that leads to efficiency and that which does not.
  9. Respect ethical, social and environmental values.
  10. Understand academic research in the areas indicated.
  11. Use different statistical programs to process data.

Content

Environmental Policies: 

  1. The economic analysis of the environment and ecological economics. The relationship between the economy and the environment. The economy and environmental problems.
  2. Markets operation and environmental degradation. Justifications for public intervention with environmental policies. Microeconomic analysis of pollution.
  3. Different conceptions of sustainable development and their applications.
  4. Economic appraisal of environmental policies. Valuation problems.
  5. Economic analysis of the environment and future generations. Ethics and ecological economics.
  6. Environmental policy tools: environmental taxes.
  7. Environmental policy tools: tradable permits and others.
  8. The relationship between economic growth, environmental quality, and environmental policies.
  9. Global environmental problems: Economics and policy of climate change.

 

 

Health Economics and Policy Analysis

1.     What is Health Economics

1.1    Differential characteristics of health economics

1.2    The organization of a health care system

1.3    Structure of a health care system

2.     Demand for health and health care

2.1    Value of life and quality of life

2.2    Demand for health

3.     Health insurance

3.1    Basic concepts

3.2    Uncertainty and risk

3.3    Insurance

4.     Contracts and asymmetric information

4.1    Introduction: Hidden action vs. hidden type.

4.2    Hidden action (moral hazard).

4.2.1            The doctor-patient sphere

4.2.2            Risk adjustment in capitated systems

4.2.3            Moral hazard in insurance

4.3    Asymmetric information (adverse selection)

4.3.1            Adverse selection in Private Health Insurance

4.3.2            The interaction between NHS and voluntary PHI

4.3.3            Imperfect information and competition

5.     Yardstick competition and regulation

5.1.1            Relative performance evaluation

5.1.2            Introducing hospital choice

 

Methodology

The activities that will allow the students to learn the basic concepts included in this course are:

1. Theory lectures where the instructor will explain the main concepts.

The goal of this activity is to introduce the basic notions and guide the student learning

2. Problem Sets

In some subjects, a problem set which students will have to solve individually or in teams will be included in every unit. The goal of this activity is twofold. On one hand students will work with the theoretical concepts explained in the classroom, and on the other hand through this practice they will develop the necessary skills for problem solving.

3. Practice lectures

The aim of this activity is to comment on and solve any possible doubt that students mayhave had solving the problem assignment. This way they will be able to understand and correct any errors they may have had during this process.

4. Essay writing

In some subjects students will produce written essays on the topics proposed

5. Tutoring hours

Students will have some tutor hours in which the subject instructors will help them solve any doubts they may have.

 

Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Lectures with ITC support 37.5 1.5 10, 5, 7, 6, 8, 2, 3, 9, 11
Resolution of exercises 37.5 1.5 10, 5, 7, 6, 8, 2, 3, 9, 11
Type: Supervised      
Tutoring and monitoring work in progress. In-class presentations 62.5 2.5 1, 10, 5, 7, 6, 8, 2, 3, 4, 9, 11
Type: Autonomous      
Study, Reading, Exercise solving, Essays writing, 79.5 3.18 10, 5, 7, 6, 8, 2, 3, 9, 11

Assessment

  1. The module consists of a number of different subjects or parts taught by different professors. The final mark for the module will consist of the average of the marks of each subject within the module. 

    • The module is considered successfully passed if:

      • the mark for each subject within the module is higher than or equal to 3.0 (in a 0 to 10 scale), and

      • the final mark for that module is higher than or equal to 5.0 (in a 0 to 10 scale). 

        IMPORTANT: In order to pass each subject, students must attend at least 80% of the lectures (special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators).

    • If the module is not successfully passed the MEBA coordinators will ask the student to re-take the exams for those subjects that, according to the coordinators and the professors opinions, may help the student to successfully pass the module. If the student passes the re-take exam he or she will obtain a mark of 5 for that subject, otherwise the previous grade will remain valid. The calendar for the re-retake exams will be announced along with the grades report 

  1. The mark -between 0 and 10- for each subject will be computed by each professor based on his or her ow criteria and on the student's performance. As a general rule, 35% of the mark will correspond to the assessment of the continuous work of the student during the course, and 65% will consist of acomprehensive final examination. The duration and nature of the final examination isdecided by each professor. 

  1. Final exams are compulsory. Re-take exams are only thought for those students having previously written a first exam and failed.

     

    Environmental Policies

    • Individual written essays (35%)
    • Final exam (65%)

    IMPORTANT: In order to pass each subject, students must attend at least 80% of the lectures (special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators).

     

    Health Economics

    • Continuing evaluation (assignments, in-class presentations and participation): 30% of the final grade
    • Midterm written examination: 30% of the final grade
    • Final evaluation (written exam): 40% of the final grade

    IMPORTANT: To pass this course, students must attend at least 80% of the lectures (special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators).

     

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Exercises and essays 35% 27 1.08 1, 10, 5, 7, 6, 8, 2, 3, 4, 9, 11
Topic Exam: Environmental Policies 21.66% 2 0.08 1, 10, 5, 6, 2, 9
Topic Exam: Health Economics and Health Policies 41.33% 4 0.16 1, 10, 5, 7, 8, 9

Bibliography

Environmental Policies: 

  • Main books

    Common, M., Stagl, S. (2005). Ecological Economics. Cambridge University Press, Cambridge.

    Jacobs, M. (1991) The Green Economy. Pluto Press, London.

    Pearce, D.W., Turner R.K. (1990) Economics of Natural Resources and the Environment. Harvester Wheatsheaf, London.

     

    Books of readings

    Bergh, J.C.J.M van den (ed.) (1999). Handbook of Environmental and Resource Economics. Edward Elgar, Cheltenham.

    Mollica, D., and Campdell, T. (2009). Sustainability. Ashgate, Burlington.

    Stavins, R. N. (ed.) (2019) Economics of the Environment, Selected Readings, W. W. Northon and Company, New York and London. (Seventh edition).

     

    There are several journals, which you can refer to. These include:

     

    Ecological Economics, Environmental Values, Environmental and Resource Economics, Energy Policy, Energy Economics, Energy Policy, Journal of Environmental Economics and Management, Land Economics, Environment and Planning (A) and (C), Environment & Development Economics, Journal of Environment and Development.

    Extended bibliography

     

    Unit 1:

    Boulding, K.E. (1966) “The Economics of the Coming Spaceship Earth” H. Jarrett (ed.), Environmental Quality in a Growing Economy, pp. 3–14. Baltimore, MD: Resources for the Future/Johns Hopkins University Press.

    Daly, H. E. (1987) “The Economic Growth Debate: What Some Economist Have Learned But Many Have Not”, Journal of Environmental Economics and Management, Vol. 14 (4), pp. 323–336.

    Daly, H. E. (1999) “Steady-state economics: avoidinguneconomic growth” in J.C.J.M. van den Bergh (ed), Handbook of Environmental and Resource Economics, Edward Elgar, Chelktenham, UK.

    Georgescu-Roegen, N. (1977) “What thermodynamics and biology can teach economists”, Atlantic Economic Journal, Vol.5 (1), pp. 13–21.

    Kapp, K. W. (1976) “The open system character of the economy and its implications”, in Kurt Dopfer (ed.) Economics in the Future: Towards a New Paradigm, Macmillan, London.

     

     

    Unit 2:

    Aguilera-Klink, F. (1994) “Some Notes on the Misuse of Classic Writings in Economics on the Subject of Common Property”, Ecological Economics, Vol. 9 (3), pp. 221–228.

    Ayres, R.U., Kneese, A. V. (1969) “Production, Consumption, and Externalities”, American Economic Review, Vol. 59 (3), pp. 282–297.

    Coase R.H. (1960) “The Problem of Social Cost”, Journal of Law and Economics, Vol. 3, pp. 1–44.

    Gordon, H.S. (1954), “Economic Theory of a Common-Property Resource: the Fishery”, Journal of Political Economy, Vol. 62, pp. 124–142.

    Hardin, G. (1968) “The Tragedy of Commons”, Science, Vol. 162, pp. 1243–1248.

    Mishan E.J. (1971) “The postwar literature on externalities: An interpretative essay”, Journal of Economic Literature, Vol. 9 (1), pp. 1–28.

    Ostrom, E. et al. (1999) “Revisiting the Commons: Local Lessons, Global Challenges”, Science 284. pp. 278–282.

    Pigou A. C. (1920) The Economics of Welfare. Macmillan and Co, London.

     

     

    Unit 3:

    Alcántara, V., Padilla, E. (2003) “Key sectors in final energy consumption: an input–output application to the Spanish case”, Energy Policy, Vol. 31, pp. 1673–1678.

    Bergh, J.C.J.M van den, Verbruggen, H. (1999) “Spatial sustainability, trade and indicators: an evaluation of the ‘ecological footprint’”, Ecological Economics, Vol 29, pp. 61–72.

    Daly, H.E. (1997) “Georgescu-Roegen versus Solow/Stiglitz”, Ecological Economics, Vol. 22 (3), pp. 261–270. (and answers of Solow, R.M. and Stiglitz, J.E.)

    Hamilton, K., Clemens, M. (1999), “Genuine savings rates in developing countries”, World Bank Economic Review, Vol. 13: 333–356.

    Mathews, E. et. al, (2000) The Weight of Nations, World Resources Institute.

    Naredo, J.M. (1999), “Sobre la “sostenibilidad” de los sistemas”, Ch. 5 of Naredo, J.M. and Valero, A. (dir), Desarrollo Económico y Deterioro Ecológico, Fundación Argentaria/Visor dist., Madrid.

    Pearce, D.W., Atkinson, G.D. (1993) “Capital Theory and the measurement of sustainable development: an indicator of “weak” Sustainability”, Ecological Economics, Vol. 8, pp. 103–108.

    Solow, R.M. (1992) “Sustainability: An Economist’s Perspective”, National Geographic Research and Exploration, Vol. 8, pp. 10–21.

    Victor, P. A. (1991), “Indicators of sustainable development: some lessons from capital theory”, Ecological Economics, Vol. 4, pp. 191–213.

    Wackernagel, M., Rees, W. (1997) “Perceptual and structural barriers to investing in natural capital: economics from an ecological footprint perspective”, Ecological Economics, Vol. 20 (1), pp. 3–24.

     

    Units 4 and 5:

    Arrow, K.J., Cline, W.R., Mäler, K.J., Munashinghe, M., Stiglitz, J.E. (1995) “Intertemporal Equity and Discounting” en Munashinghe, M. (ed), Global Climate Change: Economic and Policy Issues, World Bank Environment Paper, n. 12, Washington.

    Bromley (1989) “Entitlements, missing markets and environmental uncertainty”, Journal of Environmental Economics and Management, Vol. 17, pp. 181–194.

    Brown, P.G. (1998) “Towards an economics of stewardship: the case of climate”, Ecological Economics, Vol. 26, pp.11–21

    Carlson, R. T. et al. (2003) “Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill”, Environmental and Resource Economics, Vol. 25 (3), pp. 257–286.

    Diamond, P.A., Hausman, J.A. (1994) “Contingent valuation: is some number better than no number?”, Journal of Economic Perspectives, Vol. 8, pp. 45–64.

    Kahneman, D., J.L. Knetsch (1992) Valuing public goods: the purchase of moral satisfaction, Journal of Environmental Economics and Management, Vol. 22, n.1, pp. 57–70.

    Kelman, S. (1981) “Cost Benefit Analysis: An Ethical Critique” (and answers of different authors), Regulation: AEI Journal on Government and Society, Vol. 5(1), pp. 33–40.

    Kula, E. (1992), Economics of Natural Resources and the Environment, Chapman and may, Londres, Chap. 2.

    Markandya, A., Pearce, D. (1988) “Natural environments and the social rate of discount”, Project Appraisal, Vol. 3, pp. 2–12.

    Padilla, E. (2002) “Intergenerational equity and sustainability”, Ecological Economics, Vol. 41 (1), pp. 69–83.

    Sterner, T. (1994) “Discounting in a World of Limited Growth”, Environmental and Resource Economics, Vol. 4, pp. 527–534.

     

    Units 6 and 7:

    Baranzini, A., van den Bergh, J., Carattini, S., Howarth, R.,Padilla, E., Roca, J. (2017) “Carbon pricing in climate policy: Seven reasons, complementary instruments, and political-economy considerations”, WIREs Climate Change, Vol. 8(4), pp. 1–17.

    Baumol W., Oates W. (1975). Theory of Environmental Policy. Cambridge University Press.

    Bergh, J.C.J.M., Angelsen, A., Baranzini, A., Botzen, W.J.W., Carattini, S., Drews, S., Dunlop, T, Galbraith, E., Gsottbauer, E., Howarth, R.B., Padilla, E., Roca, J., Schmidt,  R.C. (2020) “A dual-track transition to global carbon pricing: the glass is half full”, Climate Policy, 20(10), 1349–1354.

    Hotelling, H., (1931) “The Economics of Exhaustible Resources”, Journal of Political Economy, Vol. 22 (9), pp. 137–175.

    Krutilla, J.V. (1967) “Conservation reconsidered”, American Economic Review, Vol. LVII, pp. 778–786.

    Padilla, E., Roca, J. (2004) “The proposals for a European tax on CO2 and their implications for intercountry distribution”, Environmental and Resource Economics, Vol. 27 (3), pp. 273–295.

    Palmer, K., Oates, W.E., Portney, P.R. (1995) “Tightening Environmental Standards: The Benefit–Cost or the No-Cost Paradigm?”, The Journal of Economic Perspectives, Vol. 9 (4), pp. 119–132.

    Porter, M., van der Linde, C. (1995) “Toward a New Conception of the Environment–Competitiveness Relationship”, The Journal of Economic Perspectives, Vol. 9 (4),  pp. 97–118.

    Schmalense, R., Joskow, P.L., Ellerman, A.D., Montero, J.P., Bailey, E.M. (1998) “An Interim Evaluation of Sulfur Dioxide Emissions Trading?”, Journal of Economic Perspectives, 12 (3), pp. 53–68.

    Spash, C. L.(2010) “The Brave New World of Carbon Trading”,  New Political Economy, Vol. 15 (2), pp. 169–195.

     

     

    Unit 8:

    Dasgupta, S., Laplante, B. Wang, H., Wheeler, D. (2002) “Confronting the environmental Kuznets curve”, Journal of Economic Perspectives, Vol. 16, pp. 147–168.

    Dinda, S. (2004) “Environmental Kuznets curve hypothesis: A survey”, Ecological Economics, Vol. 49(4), 431–455.

    Ekins, P. (1997) “The Kuznets curve for the environment and economic growth: examining the evidence”, Environment and Planning A, Vol. 29, pp. 805–830.

    Roca, J., Padilla, E., Farré, M., Galletto, V. (2001) “Economic Growth and Atmospheric Pollution in Spain: Discussing the Environmental Kuznets Curve Hypothesis”, Ecological Economics, Vol. 39 (1), pp. 85–99.

    Shahbaz, M., Sinha, A. (2019) “Environmental Kuznets curve for CO2 emissions: a literature survey”, Journal of Economic Studies, Vol. 46 (1), 106–168.

    Stern, D.I., Common, M.S. and Barbier, E.B., (1996) “Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development”, World Development, Vol. 24, pp. 1151–1160.

     

     

    Unit 9:

    Azar, C. (1998) “Are Optimal CO2 Emissions Really Optimal?”, Environmental and Resource Economics, Vol. 11 (3–4), pp. 301–315.

    Azar, C. (2000) “Economics and distribution in the greenhouse”, Climatic Change, Vol. 47, pp. 233–238.

    Cline, W.R. (1992) The Economics of Global Warming. Institute for International Economics, Washington, DC.

    IPCC (2001) Climate Change 2001: Mitigation. Contribution of Working Group III to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge.

    IPCC (2007) Climate Change 2007: The Physical Science Basis, Summary for Policymakers, Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge.

    IPCC (2014) Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. IPCC, Geneva, Switzerland, 151 pp.

    Nordhaus, W.D. (1993) “Reflections on the Economics of Climate Change”, The Journal of Economic Perspectives, Vol. 7 (4), pp. 11–25.

    Nordhaus, W.D. (2007) “A Review of the “Stern Review on the Economics of Climate Change”, Journal of Economic Literature, Vol. 45 (3), pp. 686–702.

    Nordhaus, W. (2018) “Evolution of modelling of the economics of global warming: changes in the DICE model, 1992-2017”, Climatic Change, Vol. 148, pp. 623–640.

    Padilla, E. (2004) “Climate Change, Economic Analysis and Sustainable Development”, Environmental Values, Vol. 13 (4), pp. 523–544.

    Pearce, D., Cline, W.R., Achanta, A.N., Fankhauser, S., Pachauri, R.K., Tol, R.S.J., Vellinga, P. (1996) The Social Costs of Climate Change: Damages and Benefits of Control, Intergovernmental Panel of Climate Change: Working Group III Report, Cambridge University Press, Cambridge.

    Pindyck, R.S. (2017) “The Use and Misuse of Models for Climate Change”, Review of Environmental Economics and Policy, Vol. 11, pp. 100–114.

    Spash, C.L., (2007). “The economics of climate change impacts a la Stern: Novel and nuanced or rhetorically restricted?”, Ecological Economics, Vol. 63 (4), pp. 706–713.

    Stern, N. (2006) Stern Review Report on the Economics of Climate Change; Cambridge University Press, Cambridge.

    Weitzman, M.L. (2012): “GHG targets as insurance against catastrophic climate damages”, Journal of Public Economic Theory, vol. 14, n. 2, pp. 221–244.

     

Health Economics and Policy Analysis:

Main references

 

Barros, P.P. and X. Martinez-Giralt, 2012, Health Economics. An Industrial Organization Perspective, New York, Routledge.

 

Rolland, S., A.C. Goodman, and M. Stano, 2004, The Economics of Health and Health Care,  Upper Saddle River, NJ, Prentice Hall.

 

Glied, S. and P.C. Smith (eds.), 2011, The Oxford Handbook of Health Economics, Oxford, Oxford University Press.

 

Zweifel, P., F. Breyer and M. Kifmann, 2009, Health Economics, Springer, Berlin.

 

Complementary references

 

Anderson, G. and P. Markovich, 2010, Multinational Comparisons of Health Systems Data, 2008, The Commonwealth Fund.

 

Feldstein, P.J., 2002, Health Care Economics, Thomson, Delmar Learning, Clifton Park, NY.

 

Jones, A.M. (ed.), 2006, Elgar Companion to Health Economics, Cheltenham, Edward Elgar.

             

OECD, 2010, Health Policy Studies - Improving Value in Health Care: Measuring Quality, OECD Publishing.

 

OECD, 2010, Health Policy Studies - Value for Money in Health Spending, OECD Publishing.

 

OECD, 2011, Economic Policy Reforms 2011: Going for Growth, OECD Publishing, Chapter 6.

 

Olivella, Pau, 2018, “Healthcare and Health Insurance Markets” in The Handbook in Game Theory and Industrial Organization, eds. Marco Marini and Luis Corchón, Edgar Elgar.

 

Olivella, Pau, 2016, “Why Do People Buy Private Health Insurance in the Presence of a Public Option”, Els Opuscles del CREI N. 41, Universitat Pompeu Fabra, Barcelona.

 

Phelps, C.E., 1992, Health Economics, Harper Collins, New York.

 

Puig-Junoy, Jaume, 2013, Paying for Free Healthcare. The role of prices in our healthcare decisions, (e-book), Barcelona, Los libros del lince.

Software

No