The Economics of Networks

Social networks provide opportunities for individuals in spreading information, such as the experience sharing of a new product. They facilitate the borrowing and lending, such as the emergence of microfinance. They also influence the collective actions, as we may influence our friends’ political inclinations as well as their voting behaviors. While the social network portrays the delineation of the relationship between individuals, this course provides an overview on current economic research that intends to understand the interaction between social networks and economic behaviors. This course is theory-based and self-contained. The students are strongly encouraged to acknowledge game theory. This course aims at undergraduate and graduate students and to provide an overview on game-theoretic social networks in the disciplines of economics. We will learn the basic tools in analyzing the interaction between social networks and economic behavior. The topics will cover social learning, local public good, collective actions, and network formation. College of Social Sciences Main Campus Grading: 1. Student presentation (30%) 2. Attendance (a 4-day absence allowance is given) (10%) 3. Participation in the session of student presentation, including 1-page introduction and preparation for receiving cold call during the presentation (20%) 4. Midterm project proposal and Final-term paper (40%) Course outline (Course Schedule of 18 weeks) Week 1: Introduction Week 2: No Class ? Peace Memorial Day Week 3: Games on networks Ch.3 of (C) Bramoulle, Y. and R. Kranton 2007, Local Public Goods in Networks, Journal of Economic Theory Week 4: Coordination game Ch.4 of (C) Week 5: Social Learning Ch.5 of (C) Bala, V. and S. Goyal 1998, learning from neighbors, The Review of Economic Studies Week 6: Labor Market Ch.6 of (C) Calvu-Armengol, A. and M.O. Jackson 2004, The Effects of Social Networks on Employment and Inequality, American Economic Review Week 7: No Class ? Tomb Sweeping Day Week 8: Network formation Ch.7 of (C) Ch.5 of (SEN) Week 9: Student Project Proposal Week 10: Student Presentation Chatterjee, Kalyan and B. Dutta 2016, Credibility and Strategic Learning in Networks, International Economic Review Babus, Ana and T. Hu forthcoming, Endogenous Intermediation in OTC market, Journal of Financial Economics Week 11: Student Presentation Dutta, B., S. Ghosal, and D. Ray 2005, Farsighted Network Formation, Journal of Economic Theory Bloch, F. and M.O. Jackson 2003, The Formation of Networks with Transfers among Players, Journal of Economic Theory Week 12: Student Presentation Gale, D. and S. Kariv 2003, Bayesian Learning in Social Networks, Games and Eco- nomic Behavior Golub, B., and M.O. Jackson 2010, Nave Learning in Social Networks and the Wisdom of Crowds, American Economic Journal: Microeconomics Week 13: Student Presentation Elliott, M., B. Golub, and M.O. Jackson 2014, Financial Networks and Contagion, American Economic Review Calvu-Armengol, A. 2004, Job Contact Networks, Journal of Economic Theory Week 14: Student Presentation Hagg, M. and R. Lagunoff 2006, Social Norms, Local Interaction, and Neighborhood Planning, International Economic Review Chwe, M. 2000, Communication and Coordination in Social Networks, The Review of Economic Studies Week 15: No Class ? Dragon Boat Festival Week 16: Student Presentation Ballester, A. Calvu-Armengol, and Y. Zenou 2006, Who is Who in Networks: Wanted the Key Player, Econometrica Galeotti, A., S. Goyal, M.O. Jackson, F. Vega-Redondo, L. Yariv, 2010, Network Games, The Review of Economic Studies Week 17: TBA Week 18: Final No Class Chun-Ting Chen 32 Tuesday 6,7,8 ECON5131 (323EU1720) 3 (College of Social Sciences) Department of Economics,
(College of Social Sciences) Graduate Institute of Economics
*Registration eligibility: juniors and above, and graduate students. http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Market and Strategy

This course explores the ways in which firm strategy affects, and is affected by, how markets “work.” Understanding this interplay is crucial for those interested in management, public policy, consulting, antitrust law, as well as those generally curious about why certain products are (or are not) available and why it is that firms behave the way they do. This course will explore this “interplay” using a mixture of theoretical models and empirical tools with a heavy emphasis on real-world applicability of what we learn. This course surveys empirical research in industrial organization (IO), with a focus on statistical and game‐theoretic models. The goal of the course is to a) raise students’ awareness of what people care about in different industries or market structures, and b) stimulate new research interests. By the end of the course, students should be familiar with the key issues and approaches in empirical IO, the strengths of these research streams, and the opportunities to apply/extend them. College of Social Sciences Main Campus Microeconomics (I) & (II), Statistics and Econometrics (1) & (2) Chung-Ying Lee 30 Wednesday 6,7,8 ECON5126 (323EU2250) 3 (College of Social Sciences) Graduate Institute of Economics,
(College of Social Sciences) Department of Economics

*Registration eligibility: juniors and above, and graduate students. http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Experimental Economics I: Behavioral Game Theory

[For details, see: http://homepage.ntu.edu.tw/~josephw/experimental_17S.htm] This is an upper division and graduate level course on experimental economics, focusing on behavioral game theory. The purpose is to introduce experimental economics to students so they can start their own research in this field. You are expected to write individual research proposals and present them. Specific goals of this course include: 1. Introduction to experimental economics: After this class, students are expected to be able to name several experiments performed in each fields of economics, and describe how the results affirm (or differ from) economic theory and/or field data. 2. Experimental design: After this class, students are expected to understand how to design and run an experiment. Students will also write a research proposal that: a. Describes a proposed experiment (with sample instructions for subjects), b. Argues why should we care about this experiment and why the experiment is designed this way (compared to other possible designs), and, c. Relates your experiment to existing literature (if any) and describes expected results and/or methods to analyze the data (or simulation results). 3. Evaluate most current research: After this class, students are expected to develop the ability to read recent journal articles in experimental economics, and evaluate the quality of the papers. During class, students are expected to read assigned journal articles and book chapters and present one article and/or one chapter in class. College of Social Sciences Main Campus Intermediate Miroeconomics II and/or Game Theory. Joseph Tao-Yi Wang 50 Monday 7,8,9 ECON5112 (323EU8110) 3 *Registration eligibility: juniors and above, and graduate students.
(College of Social Sciences) Graduate Institute of Economics,
(College of Social Sciences) Department of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Advanced Public Finance

Public finance is the field of economics concerned with government expenditure and revenue. It examines both why and how governments should or should not intervene in markets. “How should the government tax people?”, “Who bears the burden of a tax?”, or “How can government spending alleviate poverty?” are exemplary questions public finance tries to answer in a rigorous way. The course provides students with a formal framework in which such questions can be addressed. Topics include: public goods and externalities, optimal taxation, tax incidence, health insurance, and social security. http://www.trembling-hand.com/courses/ The course enables students to understand and form opinions about questions of public finance in a systematic manner. At the end of the course, students will know the tools and models to analyze the role of the government in economics. College of Social Sciences Main Campus Students should have completed Microeconomics II before enrolling in this class. Hendrik Rommeswinkel 30 Tuesday 6,7,8 ECON5145 (323EU8310) 3 *Registration eligibility: juniors and above, and graduate students.
(College of Social Sciences) Department of Economics,
(College of Social Sciences) Graduate Institute of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Philosophy of Economics

The course trains students to discuss economic concepts from a philosophical perspective. Is economics a science? Do economic models need realistic assumptions? What makes an economic institution “good”? These and other questions are raised in this course. The course puts a strong emphasis on discussion and debate. Students are required to give two short presentations of research papers and defend the authors’ claims in the following discussion. Students are also required to be discussants of other students’ presentations. To train writing interesting and coherent arguments, students write a short paragraph about the debate after class. In the final paper, students examine a recently published research paper from the perspective of one of the topics discussed in class. The course has two objectives. First, it trains students to discuss economic concepts in speaking and writing. Second, it introduces students to methodological and normative issues on the border of economics and philosophy. College of Social Sciences Main Campus Hendrik Rommeswinkel 30 Wednesday 6,7,8 ECON5146 (323EU8320) 3 (College of Social Sciences) Graduate Institute of Economics,
(College of Social Sciences) Department of Economics
*Registration eligibility: juniors and above, and graduate students. http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Seminar on the Political Economy of China

Course Description As a core course in the department’s program on East Asian studies, this graduate-level course, conducted fully in English, explores various dimensions of the political, economic, and social developments of the People’s Republic of China since 1979. In addition to familiarizing the students with the empirical evidence and relevant methodology of such developments, this course also introduces the theoretical evolution/debates both in China studies and authoritarianism in comparative politics. An extended goal of this course is to prepare the students for delving into new research topics and conducting independent field research in China in the future. Students have to finish all the required readings and be prepared for heavy class participation before each class meeting. Lectures by the instructors where necessary play a supplementary role only. Course Description As a core course in the department’s program on East Asian studies, this graduate-level course, conducted fully in English, explores various dimensions of the political, economic, and social developments of the People’s Republic of China since 1979. In addition to familiarizing the students with the empirical evidence and relevant methodology of such developments, this course also introduces the theoretical evolution/debates both in China studies and authoritarianism in comparative politics. An extended goal of this course is to prepare the students for delving into new research topics and conducting independent field research in China in the future. Students have to finish all the required readings and be prepared for heavy class participation before each class meeting. Lectures by the instructors where necessary play a supplementary role only. College of Social Sciences Main Campus Course Requirements and Grading Policy ● Written essay(s) of readings that summarize (and, preferably, also critique and/or compare) all readings in a given week(50%). ● Participation in class discussion and oral presentation of weekly readings(50%). Sxue-Chin Hsu 20 Thursday 8,9 PS5676 (322EU1940) 2 Non-degree Program: Program For East Asian Studies,
(College of Social Sciences) Graduate Institute of Political Science,
(College of Social Sciences) Department of Political Science
*Registration eligibility: graduate students.
http://politics.ntu.edu.tw/english/

Macroeconomic Theory (Ⅱ)

This course is the second half of the graduate core macroeconomics sequence. This part will discuss several topics, using techniques taught in Macroeconomic Theory I. Hsuan-Li Su’s part: I will cover the following modeling frameworks: overlapping generation models, incomplete market and heterogeneous agent models, and wedges in macroeconomics. College of Social Sciences Main Campus ECON7009 (323 M0500)Introduction to Quautitative Methods Hsuan-Chih Lin 30 Wednesday 2,3,4 Thursday 3,4 ECON8009 (323EM0640) 4 (College of Social Sciences) Graduate Institute of Economics
*Registration eligibility: graduate students. http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Microeconomics (Ⅱ)

In Intermediate Micro Economics II, students have already encountered the basics of firm analysis from Principles of Economics II as well as more advanced consumer theory in Intermediate Micro Economics I. In this class we will try to extend our reach within a variety of topics focusing on firm behavior and industry level analysis. At the end of the first half of the course, students should have an understanding of (1) how firms minimize costs given production constraints, (2) how firms maximize profits given these costs, and (3) how firms interact with one another under an array of market structures. In the second half of the course, we will investigate economic models for how consumers and firms deal with uncertainty and intertemporal decision making. Extensions to standard models regarding externalities and public goods will also be discussed. Time permitting, I will also introduce the intersection of psychology and economics, sometimes called “Behavioral Economics”, and how micro economists go about applying the theories learned. College of Social Sciences Main Campus Intermediate Micro Economics 1 or equivalent. Calculus required as well. Patrick Dejarnette 83 Monday 6,7,8 ECON2002 (303E22020) 3 (College of Social Sciences) Department of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Macroeconomics (Ⅱ)

This is an intermediate level Macroeconomics. Though this is a second part of the sequences of the year long macroeconomic courses, this course is independent from Macroeconomics (I). There will be assignments, two midterms, and one final exam. This course will cover major topics, ideas, and new developments in modern macroeconomics. More specifically, we will cover (1) long run Economic Growth. (2) short run Business Cycles. (3) microfundations for macroeconomics modeling and the idea of general equilibrium. We will also cover policy issues in part (1) and part (2). For Economic Growth, in addition to the traditional Solow growth model, we will also cover how ideas and innovations affect economic growth, i.e., Romer’s endogenous growth model, since innovations is a key ingredient for sustained economic growth, but mostly skipped in intermediate macro courses. For Business Cycles, in addition to the traditional neoclassical method, we will discuss over the recent financial crisis, great recession, and introduce the idea of general equilibrium and the dynamic stochastic general equilibrium (DSGE) models, the frontier of business cycle research. This course aims to introduce modern developments of macroeconomic research in past decades to students at an appropriate intermediate level. There will be discussions and problem solving exercises in class. College of Social Sciences Main Campus 1.This course requires basic mathematics skills: (a) basic calculus (freshmen level) (b) basic algebra. 2. This is an English class. Lectures, discussions, assignments, and exams are all in English. 3. Attendance: students will form subgroups to discuss and compete in class. So regular attendance is required. Hsuan-Li Su 83 Wednesday 6,7,8 ECON2004 (303E22120) 3 (College of Social Sciences) Department of Economics
http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Statistics and Econometrics with Recitation(2)

Statistics and Econometrics I and II are designed for Econ major students to fulfill the departmental quantitative analysis requirements, and Statistics and Econometrics II (ECON 2015) is the second half of this sequence. The goal is to provide students with basic econometric tools and methods which can help them address economic questions. Students are expected to learn the linear regression model with different topics, and they are expected to under- stand the procedures of estimation and statistical inference for a given econometric model. In addition, students will learn to use computer software to apply the econo- metric models taught in class to analyze the economic data. College of Social Sciences Main Campus Prerequisites: Statistics and Econometrics I (ECON 2015) is required. Jianda Zhu 60 Tuesday 6,7 Wednesday 2,3,4 ECON2015 (303E26612) 4 (College of Social Sciences) Department of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Trade Theory

This course examines theories of international trade in goods and services and analyzes the consequences of trade policies. The course presents the principle of comparative advantage and its application to classical and modern trade theory. Focusing on the long-term effects of international economic integration, the course discusses the economic effects of trade, as well as trade barriers and trading blocks, on industrial competitiveness, the income distribution, growth and welfare. Part I of the class is dedicated to classic trade theory in a general equilibrium setting under perfect competition and explains trade among different countries. Part II of the class presents recent advances in trade theory under imperfect competition and with heterogeneous firms; it explains trade among similar countries and the formation of multinational enterprises. Part III applies the insights from both partial and general equilibrium models to policy issues related to international economic integration. College of Social Sciences Main Campus Byeonghwa Choi 80 Wednesday 6,7,8 ECON4001 (303E47300) 3 (College of Social Sciences) Department of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english

Trade Policy

International Trade Policy February 2017 Instructor: Dr. Hong Hwang office: Room 705, College of Social Science Telephone number: 3366-8367 office Hours: Friday 2:10pm to 4:00pm This course is intended to provide students with basic analytical methods in trade and to help them keep abreast of current trade issues. It starts off by closely following textbook studies of trade theory, followed by a study of trade policies. After completing the relevant part of the textbook, I shall select some articles for discussions, especially those on trade and industrial organization. Textbook: Husted and Melvin, International Economics, 9th Edition, Pearson Education Limited, 2013. (This book is available at the Yeh Yeh Book Gallery, Tel: (02) 2368-4198 ext. 14.) Prerequisite: Microeconomics Grading scheme: There will be two tests. The dates of the tests will be announced in the class. The mid-term exam and the final exam make up 1/4 and 1/2 of the final grade respectively. The other 1/4 is graded based on class participation and assignments. The mean of the final grade for the class will fall somewhere between 78 and 84, depending on the general attendance and class participation. Course Outline: Week 1: Introduction Week 2, 3 & 4: Tariffs Weeks 5, 6 & 7: Nontariff Barriers and Arguments for Protection Weeks 8: The mid-term test Weeks 9 & 10: Commercial Policy: History and Practice Week 11 & 12: Preferential Trade Arrangements Weeks 13, 14 & 15: International Trade and Economic Growth Weeks 16, 17 and 18: Imperfect Competition and Strategic Trade Policy Week 19: The final test College of Social Sciences Main Campus Hong Hwang 60 Monday 3,4 ECON4002 (303E47400) 2 (College of Social Sciences) Department of Economics http://www.econ.ntu.edu.tw/db/new2011/index.asp?l=english