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


Economics & Statistics

January 2022

Basic Material / Links:

  •  You find the course material in our AULIS group: XXX which is also the platform to upload your homework etc. In case of online classes you also find the Zoom-link there.
      

Tentative Schedule:

No
week
date (week starts) Unit - topics (Preliminary Schedule) Material
1
1
18 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 xxxday (see
table below)

Welcome.ppt

- "Basic Concepts"
- Economics @ Wikipedia
 

- Centrally planned <-> Market Economy

2
1
- " -

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

- Def_Elasticity
- 3_Types_of_Elasticities
- Matrix_Types_of_Goods

4
2
- " -
  (Module exercise today (see below) -> Mankiw aplication 17)    (Maths basiscs in Tutorial !!)
5
3
2 May

(ch. 2 Consumers surplus ...)

- Chapter 3: Firms in the Market Place 

 - "The Production Process"
 see also the Excel file with some Figures from the book
6
3
- " -     presentation 2
- Chapter 3: Firms in the Market Place   
7
4
9 May

- Chapter 4: Markets in Action 

 
8
4
- " -    presentation 3
Section III: Competition and Profitability
- Chapter 5: Market structure and Firm Performance
 
9
5
16 May

- Chapter 5: Market structure and Firm Performance (cont'd)

 
10
5
- " -    presentation 4

Competition, Monopoly and the public interest (welfare)

 
11
6
23 May

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

 
12
6
- " -    presentation 5

- Chapter 7. Growth strategies
- Chapter 8. Governing business

Review Microeconomics and YOUR questions  
>>
>>

MEMO-
RANDUM 2021

Corona – Lernen
aus der Krise! Alternativen zur Wirtschaftspolitik

/ Joint Economic Forecasts

 On 14 October 2021 the Joint Economic Forecast Autumn 2021 was published:

Crisis Is Gradually Being Overcome – Align Action with Lower Growth

  

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

13
7
30 May

Section IV: Domestic MACROeconomics

Chapter 9 : An introduction to the macro economy

German National Accounting @DeStatis:
- Important economic indicators & publications (links unfortunately killed by Destatis)
- current figures: "GERMAN ECONOMY (previous) quarter"
- 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)

14
7
- " -    presentation 6

Chapter 9 : An introduction to the Macro Economy

- GDP to NNY and summary of National Income accounting

15
8
6 June
- Chapter 10: Measuring Macroeconomic Variables and Policy Issues  Current issues:
- Arbeitsgruppe Alternative Wirtschaftspolitik: Memorandum 2022
16
8
- " -    presentation 7

Measuring WELFARE
                      & SUSTAINABILITY

(see homework below)

"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 by the "Stiglitz-Sen-Fitoussi commission" 2009

The German Statistical Office (DeStatis) publishes Environmental indicators and also an "Indicator Report 2012: Sustainable Development in Germany", also see "Wie misst man Wohlstand?"

17
9
13 June
- Chapter 11: Expenditure and Fiscal Policy

 

18
9
- " -    presentation 8
  - History of economics thoughts and policy / Economic Theory and Policy:

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

19
10
20 June
  - Keynesian Cross,
  - Multiplier, Balanced Budget / Haavelmo-Theorem
  - Consumption Function
20
10
- " -    presentation 9
   - Economic Theory and Policy:
     Different Schools of Economic Thought
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".
21
11
27 June
- Chapter 12: Money, Banking and Interest
  - Money and the Banking system,

 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 (2008)           (TARGET 2 = Trans-European Automated Real-time Gross Settlement Express Transfer System)

22
11
- " -    presentation 10
- Monetary Policy: the European Central Bank ECB
- Money and the Banking system, ECB
 
23
12
4 July
 Chapter 13: Inflation, Output and Economic Policy  
24
12
- " -    presentation 11

 Chapter 13: Inflation, Output and Economic Policy

(Chapter 14: Supply Side Policies)

 
25
13
11 July
Section V Global Economics
- Chapter 15 Exchange Rates and the Balance of Payments
  • German Bundestag: "Globalization of the World Economy - Challenges and Responses" Final Report (pdf.)
  • Trade Indicators @Destatis
  • Balance of Payments @Deutsche Bundesbank
  • Balance of Payments @ OECD
  • Balance of Payments @ EuroStat
  • 26
    13
    - " -    presentation 12
    - Chapter 15 Exchange Rates and the Balance of Payments  
    27
    14
    18 July

    - Chapter 16. Globalization
    28
    14
    - " -

    Review and conclusion
    + YOUR questions

    - Chapter 16. Globalization

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


    Teams and Tasks:
               Group:
    Date:
    All students
    1
    2
    3
    4
    5
    6

    Names:

    Alpha  

    Beta 

    Gamma  

    Delta  

    Epsilon  

    Zeta


    18 April
    no tasks, but Mankiws "Principles" in class:
    1-2
    3-4
    5-6
    7-8
    9-10
    Obama-Text
    25 April
    Mankiw: "Problems and Applications"
    15-16
    13-14
    10-12
    7-9
    4-6

    1-3

    2 May
     17 (one article)
      17 (one article)
       17 (one article)
       17 (one article)
       17 (one article)
       17 (one article)
    9 May 

     End of Chapter questions from Begg/Ward
    (chapter 1)

    (questions 10-15 and Exercises -> Tutorial)

     2,3
    4
    5
    6, 7
    8
    9
     
    End of Chapter questions from Begg/Ward
    (chapter 2 / 3)
    Chapter 2
    Exercise 2
    Chapter 2
    Questions 3 to 6
    Chapter 2
    Questions 1 and 2
    Chapter 3
    Questions 1 to 3
    Chapter 3
    Questions 6, 8 and 9
    Chapter 3
    Exercise 2
     
     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
     

    We will do some old exam tasks in class together...
    Microeconomics WS 07/08 EFA 3 (English) (60 ! min)
    Microeconomics WS 06/07 EFA 3 (English) (60 ! min)
    Microeconomics WS 05/06 EFA 3 (English) (90 min)

    + please read the article:

    An Antitrust Brain Teaser for Google: (doc)
    - What measures do antitrust authorities use to determine whether consumers are harmed by monopolies? Consider Google.
    - Are consumers harmed if Google places information provided by its own companies at the top of search output (for example, Zagat's information when searching for restaurants)?

               
     
    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, ...)

     

    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 (~ 5-10 min.) summary of two recommendations -------->

    In the Executive summary each recommendation is described in one paragraph - 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:

    International and Global Economics:

    Data Sources:

    Statistics:

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