Prof. Dr. Peter Schmidt
Introduction to ECONOMICS (Micro & Macro AWS)


Economics & Statistics

1 July 2022

Tentative Schedule:

Basic Material / Links:

      
No
week
date Unit - topics (Preliminary Schedule) Material
1
1
20 April

Section I: Introduction

- 10 Principles of Economics (Mankiw) [Reader]

(In classs: Teamwork about Mankiws "Ten Principles of Economics" and part from B. Obama "The Audaciy of Hope" (p. 176-184) (also see the current debate in the Economist)

Teams: 
Homework for next week (Thursday -> see
table below)

Welcome.ppt

- "Basic Concepts"
- Economics @ Wikipedia
 

- Centrally planned <-> Market Economy -> Miro

2
1
21 April

Basic Concepts of Economics
- Goals in Economics and Economic Policy
- Economic systems and Objectives of Economics / Economic Policy

Chapter 1: Economics for Business

Hierarchy of goals in market economies
- "Wall Street" @ Wikipedia

- See also the
quotations of T. Friedman
3
2
27 April (no class, due to a faculty seminar)

Use the class time for your homework and preview next session:

+ Mankiw: "Problems and Applications" (see table below)

Literature Management System -> ZOTERO
- Links Link Uni Bremen, Studytools
- Quick start guide (German)
- Zotero Tutorial (video)

Important: -> please install the Zotero app and the Zotero Connector for your browser !!

4
2

28 April

We'll work with ZOTERO, please install the app and the Zotero Connector for your browser

-> To access the databases from outside the university you need a VPN connetion

(Presentation of the) possibilities of the University Library: Econmics & Business Studies, Selected Resources - Faculty 1: International Business, Data Bases

 

Exercise: For a term paper you need to use - and quote correctly of course - different sources about the basic approaches / assumptions of Economics.
They have to be academic sources!
(There is not one correct answer. Hopefully the groups find different sources, so all can learn about those)


Let's Have a look around at the SuUB: University Library: Econmics & Business Studies, Selected Resources - Faculty 1: International Business, Data Bases

- EconLit

-> EconBiz.de -- Find Economic Literature (Service des ZBW):
- Wissenschaftliche Literatur recherchieren und bewerten (pdf)
- Zitieren und Literaturverzeichnis (pdf Faltblatt)
- Video-Reihe Hausarbeit +02: Wie suche ich (wissenschaftliche) Information und Fachaufsätze? ...
- Guided Walk -
Deine erste (Haus)arbeit - Warum das hier wichtig ist (mit Selbsttests)
- OECD iLibrary: http://www.oecd-ilibrary.org/
- Web of Science: http://isiknowledge.com/wos

5
3
4 May
topics of last sessions continued  
6
3
5 May
Chapter 1: Economics for Business  
7
4
11 May

Section II: Understanding Markets
- Chapter 2: Consumers in the Market Place

Important: The test can only be taken IN CLASS (I'll take a participants list, please bring your student ID), if you take it from another place, it doesn't count.

Topics of test 1 (preliminary): Introduction, basic questions, objectives (hierarchy of goals), 10 Principles of Economics, chapter 1 and 2 (as far as discussed) - you find an expample (pre-) test in AULIS

8
4

12 May   presentation 3

 + Test 1
(last 20 minutes in class!!)

  - Chapter 2: Consumers in the Market Place
       ->   ELASTICITIES
(1)
 
9
5
18 May

- Chapter 2: Consumers in the Market Place
       ->   ELASTICITIES
(2)

Presentations:

   - "The Production Process"
 see also the Excel file with some Figures from the book

10
5
19 May    presentation 4

topics of last sessions continued (Elasticities)

- we are _not_ going to discuss Chapter 3: Firms in the Market Place -> only 3.2 and 3.3 (= won't be in a test)

 
11
6
25 May   presentation 5 (8:30)
+ Test 2 (9:30)

- Chapter 4: Markets in Action 

Topics of test 2 (preliminary): 10 Principles of Economics,
Begg & Ward chapter 2 and 4

12
6
26 May    

(no class, national holiday)

 
13
7

1 June - online

    presentation 6

Section III: Competition and Profitability

- Chapter 5: Market structure & Firm Performance (cont'd)
Competition, Monopoly and the public interest (welfare)

 - Chapter 6. Strategic rivalry -> Oligopoy and Game Theory

Bundeskartellamt - Control of abusive practices - Ban on cartels
Information brochure: Effective cartel prosecution - Benefits for the economy and consumers - Leniency Programme
Deutsche Bahn AG to make changes to ticket sales - do you like a coffee?

Movie "A beautiful Mind" about John F. Nash:     "the best result will come if everyone does what is best for himself ... and the group"
In memoriam of John F. Nash
- 'Beautiful Mind' mathematician John Nash killed in crash
- Famed 'A Beautiful Mind' mathematician John Nash and his wife, killed in N.J. Turnpike crash
- "Split or Steal" and "From Stealing to Trust"

14
7

2 June - online -

  presentations 7

- Chapter 5: Market structure & Firm Performance (cont'd)
Competition, Monopoly and the public interest (welfare)

 

15
8

8 June - online -

presentations 8

 - Chapter 5: Market structure & Firm Performance (cont'd)
Competition, Monopoly and the public interest (welfare)

 - Chapter 6. Strategic rivalry -> Oligopoy and Game Theory

(No class discussion of:
- Chapter 7. Growth strategies
- Chapter 8. Governing business)

 

 

Topics of test 3 (preliminary): Begg & Ward chapters 3 (only elasticity) to 5
(only parts discussed in class)

>>
>>

MEMO-
RANDUM 2022

Raus aus dem Klimanotstand –
Ideen für den Umbruch

/ Joint Economic Forecasts

 On 13 April 2022 the Joint Economic Forecast Autumn 2022 was published:

From Pandemic to Energy Crisis: Economy and Politics under Stress

  

On Nov 11 2021 the Council of Economic Experts published its annual report 2021/22:

SHAPING THE TRANSFORMATION: EDUCATION, DIGITALISATION AND SUSTAINABILITY

Weitere Infos zum Thema (in German):
- Übersicht: Konjunkturprognosen für Deutschland - Die Vorhersagen der Wirtschaftsschätzer (Tagesschau)
- https://www.tagesschau.de/wirtschaft/jahresgutachten-bundesregierung-101.html

16
8

9 June    - online -

  presentation 9

+ Test 3

Section IV: mAcroeconomics

- Chapter  9: An introduction to the Macro Economy

 
17
9
15 June

- Chapter  9: An introduction to the Macro Economy

- Chapter 10: Measuring Macroeconomic Variables and Policy Issues

(FYI: chapters 11 and 12 are not part of this class)

German National Accounting @DeStatis:
- Important economic indicators & publications (links unfortunately killed by Destatis)
- current figures: National Accounts at a glance (in German: "Wichtige Zusammenhänge im Überblick")

- Eurostat with National Accounts
- Source OECD & ILibrary - The OECD's Online Library of Statistical Databases, Books and Periodicals (accessible from the campus net - or via VPN)

- GDP to NNY and summary of National Income accounting

18
9

16 June    

 

presentation 10

- Chapter 10: Measuring Macroeconomic Variables and Policy Issues

Today we'll discuss National Accounting (GDP, ...) and afterwards ask ourselves:

Is GDP really an apt measure of Welfare
...quality of life, sustainable development ...?

-> Measuring WELFARE & SUSTAINABILITY

 

19
10
22 June

ECG Economy for the Common Good (GWÖ):
- What if the common good was the goal of the economy? | Christian Felber | TEDxVienna
- ECG webpage - have a look around
[in German:
- Gemeinwohlökonomie, Übersichts-Flyer, Flyer
. GWÖ aus Unternehmenssicht
. Gemeinwohl-Matrix 5.0, Arbeitsbuch, Kompakt
. Punkten für das Gemeinwohl & die SDGs]

Doughnut Economics (Ways to Think Like a 21st-Century Economist)
- Why it's time for 'Doughnut Economics' | Kate Raworth | TEDx
- www.kateraworth.com/
- Re-Writing (Neo-Liberal) Economics

OECD: "Beyond GDP" Joseph E. STIGLITZ, Jean-Paul FITOUSSIand Martine DURAND

 

- How can countries measure the well-being of their citizens? (TED institute)

"Monitoring economic performance, quality of life and sustainability" by the German Council of Economic Experts in association with the french Council of Economic Analysis - Joint Report 2010 requested by the Franco-German Ministerial Council to Chancellor Mrs. Angela Merkel and french President Nicolas Sarkozy (deutsche Übersetzung: Wirtschaftsleistung, Lebensqualität und Nachhaltigkeit: Ein umfassendes Indikatorensystem). This report (and request) was based on the ...
-> Report of the commission on the measurement of economic performance et social progress 2009
- Joseph Stiglitz - Problems with GDP as an Economic Barometer
- Amartya Sen: Beyond GDP, measures of welfare and sustainability (2/7 ..)

The German Statistical Office (DeStatis) publishes Environmental indicators and also an "Indicator Report - Sustainable Development in Germany" + "Indicator Report 2021: Sustainable Development in Germany"

20
10
23 June + Test 4

Section V: Macroeconomic Policy
- Chapter 13: Expenditure and Fiscal Policy  

- History of economics thoughts and policy
      / Economic Theory and Policy:

Topics of test 4: Begg & Ward chapters 6: Market structures, performance and Welfare in PC and momopoly, economic profit and 9 and 10
(parts discussed in class): Tagets of Economic Policy, GDP development, The Circular Flow of Income; Measurement of GDP
21
11
29 June

- Chapter 13: Expenditure and Fiscal Policy  
  - Keynesian Cross

22
11
30 June    presentation 13

The Multiplier

 
23
12
6 July

Multiplier, Balanced Budget (en) / Haavelmo-Theorem (de)

Topics of test 5:
Tagets of Economic Policy, GDP development, The Circular Flow of Income; Measurement of GDP (=review chapter 9/10)
Alternative economic approaches (recommendations Stiglitz commission, ECG, Doughnut Economics)
Begg & Ward chapter 13 (parts discussed in class) = Keynesian Cross, mulitplier
24
12

7 July    presentation 14
class only 14:30-16:00!

+ Test 5

- Chapter 14: Money, Banking and Interest
  - Money and the Banking system

*** Evaluation ***

 Main Source : European Central Bank ECB, Educational Sources:
- European Monetary Union explained
- The European Centrag Bank (EU Parlament)
- The History of the European Central Bank
- Monetary Policy Instruments           (TARGET 2 = Trans-European Automated Real-time Gross Settlement Express Transfer System)
+
Definitions of monetary aggregates - MFI information - Inflation Monitor - see also: Leitzins.info
25
13
13 July
- Monetary Policy: the European Central Bank ECB

 

26
13
14 July   presentation 15

 Chapter 15: Inflation, Output and Economic Policy

Some Videos "Fight of the Century" / Fear the boom and the bust
- "Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem
- Fight of the Century: Keynes vs. Hayek Round Two
and more information like "The Tale of the Dueling Economists".
27
14
20 July - online -

Chapter 16: Supply Side Policies & Economic Growth

Review and conclusion
+ YOUR questions
 
28
14

21 July    - online -

presentation 16 + Test 6

Chapter 16: Supply Side Policies & Economic Growth

 Video about economic approaches: "60 Second Adventures in Economics"


Teams and Tasks:
           Group:
Date:
All students
Alpha
BWL-Justus
Charlie
Drizzy
Erik
Foxtrot
 


Names:

Luca
Jan
Marcel
Paul
Christoph
Thorben
Ali

Lizz
Christian
Diana
Karena
Julia
Emely
Hasan

Luay
Emirhan
Arton
Ghandi
Mohamad
Amadou
Nilly
Kea
Marwa
Malek
Adam
Shieaer
Fatma
Nadja
Zoe
Leon
Adrian
Emin
Daniel
Kenan
Can
Yasir
Cécile
Louis-Marie
Angilique
Tim
Haifaa
Patrick
Henri
20/21 April

no tasks, but Mankiws "Principles" in class:

- name and describe your principles / text
- provide an _own_ example per principle

1-2
3-4
5-6
7-8
9-10
Obama-Text
28 April

Practise to use literature-databases (EconBiz, EconLit) properly: research 3-5 articles from academic journals
- either for your presentation topic
- _or_ for the topic given in your column:
= find them, check contents (abstract) and if it fits / is helpfull add it to your literature management system.

+ literature research: your chapter or
- Price Elasticity of demand

+ literature research: your chapter or
- Cartel prosecution (in Germany)

+ literature research: your chapter or
- market structures

+ literature research: your chapter or
- Covid and inflation

+ literature research: your chapter or
- (ukrainian) war and inflation

+ literature research: your chapter or
- alternative economic approaches

5 May

Mankiw: "Problems and Applications":

15-16
 17 (one article)

  13-14
17 (one article)

10-12    
17 (one article)

7-9
   17 (one article)

4-6
   17 (one article)

1-3
   17 (one article)

12 May 
 End of Chapter questions from Begg/Ward
(chapter 1)
 2,3
4
5
6,7
8
9
19 May 
End of Chapter questions from Begg/Ward
(chapter 2)
-> all students: Exercise 1 and 2
-> all students: Exercise 1 and 2 -> all students: Exercise 1 and 2 -> all students: Exercise 1 and 2 -> all students: Exercise 1 and 2 -> all students: Exercise 1 and 2 -> all students: Exercise 1 and 2
- no discussion of chapter 4 -
End of Chapter questions from Begg/Ward
(chapter 3)
-> all students: Exercise 1 and 2
1
2
3
4
5
6
2 June
 End of Chapter questions from Begg/Ward
(chapter 4)

Question 2

Exercise 2 (a)

Question 3

Exercise 2 (b)

Question 6

Exercise 2 (c)

Question 8

Exercise 2 (d)

Question 9+10

Exercise 2 (e)

Exercise 3

 ...
  End of Chapter questions from Begg/Ward
(chapter 5)
Questions 13 and 12  Question 10 + Explain, what "creative destruction" is about   Questions 8 and 9   Questions 6 and 7  Questions 4 and 5  Question 3, 1 and 2
please prepare for 16 June 

Please prepare this task about monopoly v. PC

           
 

We might do some old exam tasks in class together...
Examples of old written exams (different type and longer than ours, just for your orientation about the topcis:
Microeconomics WS 07/08 EFA 3 (60 ! min)
Microeconomics WS 06/07 EFA 3 (60 ! min)
Microeconomics WS 05/06 EFA 3 (90 min)

Research the tasks of the Bundeskartellamt:
                                                                      ----->   
and briefly present the results in class (3 min / group)

  1. Merger control    2. Ban on cartels   3. Abuse control  4. Public procurement  5. Whistle-blower  6. Leniency Programme
 
End of Chapter questions from Begg/Ward
(chapter 9)
Exercise 2 a - e
The same task as Team Alpha, but use the numbers for Germany
Exercise 2 f - i
The same task as Team Delta, but use the numbers for Germany
Exercise 3
Refer to figure 9-11 (slide 20 of the ppt), the business cycle. Look at the business cycle for Germany for the last decade and find (or produce) a diagram. Describe the developments you find (boom, recessions, ...)

please prepare for 23 June

Critiques of GDP - Measuring Sustainable Development

In the Report of the "Stiglitz-Sen-Fitoussi commission" on the "Measurement of economic performance and social progress" (2009) the authors deliver 12 recommendations. Each team is requested to present a brief (~ 5 to max 10 min.) summary of two recommendations -------->

In the Executive summary each recommendation is described in one paragraph (p.7-18), but you also find more information in the more detailed part of the report or/and other sources.

Recommendations 1 and 2

´Recommendations 3 and 4 Recommendations 5 and 6 Recommendations 7 and 8 Recommendations 9 and 10 Recommendations 11 and 12
 
End of Chapter questions from Begg/Ward
(chapter 10)
question 8
questions 5 and 6 questions 4 question 3 questions 1 and 2 Exercise 2
 

All Teams please perform a regression analysis for the consumption function for ...

(You might find data sources at the Statistische Bundesamt, ECB, IMF, ... There are also some links below. You should use a time series with as many observations as possible. The dependent variable is the final consumption of the households, the independent variable is the disposable income / or national income as a substitute)

... the USA ... France ... Germany ... England (/ GB) ... Ireland ... Spain
 

End of Chapter questions from Begg/Ward (chapter 11)

+ all students (individually!) please prepare exercise 2

questions 1,2 questions 3,4 questions 5,6 questions 7,8 questions 9,10 questions 11,12


Links:
please let me know if links don't work ++ and especially if you youself have a good tip for me and your classmates)

International and Global Economics:

Data Sources:

Statistics:

Bremen University of Applied Sciences
Department of Business Studies
Economics & Statistics