JEM081 - Advanced Economics of European Integration - Microeconomic Aspects

Credit: 6
Credit ETCS: 6
Hours weekly: 2/2
Status: Anglicky
EEI a HP - povinně specializační
ET - povinně volitelný
F,FT a B - povinně volitelný
Magisterský - vše
MEF - elective
Semestr - zimní
Obligatory courses:
Recommended courses:
Course supervisors: PhDr. Wadim Strielkowski Ph.D.
Teachers: PhDr. Wadim Strielkowski Ph.D.
prof. RNDr. Ing. František Turnovec CSc.
Assistants: PhDr. Ondřej Glazar
Schedule: Lectures each Monday 12,30-13,50 in classroom 206, seminars each Tuesday 18,30-19,50 in classroom 206. CONSULTATION HOURS Dr. Wadim Strielkowski, Monday 10,30-12,30, office 206a, or by appointment.
Announcements: See the course's Twitter webpage: http://twitter.com/JEM0811

Find us on Facebook: Jem081 - Advanced Economics of European Integration - Microeconomic Aspects
Literature: There is no single textbook fully covering all topics of the course. Students can draw from various textbooks and sources.

MAIN SOURCES:

1) Baldwin, R. and Wyplosz, C.: The Economics of European Integration. McGraw-Hill Higher Education, 2003.

2) Krugman, P. and Obstfeld, M.: International Economics: Theory and Policy. Pearson - Addison Weasley, 2006.

3) Molle, W.: The Economics of European Integration. Dartmouth Publ. Comp., Aldershot, 1996.

4) Pelkmans, J.: European Integration, Methods and Economic Analysis. Addison Wesley Longman Limited, New York, 1997.

5) Turnovec, F.: Political Economy of European Integration. Karolinum, Prague, 2003.

COMPLIMENTARY SOURCES:

De Grauwe, P.: The Economics of Monetary Integration. Oxford University Press, 1992, 1997.
Hansen, J. D. and U.M. Nielsen, An Economic Analysis of the EU, McGraw-Hill, 1997.
Jovanovich M.N., The Economics of European Integration. Edward Elgarm Cheltenham, UK, 2005.
Jovanovich, M.N., The Economics of International Integration. Edward Elgar, Cheltenham, UK, 2006.
Strielkowski, W., O’Donoghue, C., (2006), Ready to go? EU Enlargement and migration potential: lessons for the Czech Republic in the context of Irish migration experience. Prague Economic Papers, 1/2006, 2006.
Strielkowski, W. (2007), A living worth leaving? Economic incentives and labour flows: the case of Czechoslovak labour migration, Prague Economic Papers, 3/2007, 2007.
Strielkowski, W., Turnovec, F. (2008), Labor migration and welfare effects of free mobility of labour in the common market. In Mejstřík, M. et al. (2008), Social-economic models and policies to support active citizens: Czech Republic and Europe. Matfyz Press, Prague, 2008.
Strielkowski, W., Glazar, O. (2010), Turkey and the European Union: possible incidence of the EU accession on migration flows. Prague Economic Papers 3/2010, 2010.
Turnovec, F., Pechová, M., Soukeník, K. (2001), Modeling and Simulation of Decision Making Process in Extending European Union. CERGE-EI, Prague, 2001.
Svendsen, G. T.: The Political Economy of the European Union. Edward Elgar, Cheltenham, 2003.
Turnovec, F.: Institutional Economics of European Integration, Lecture notes, Central European University, Budapest 2010.
Journal of European Integration
European Journal of Political Economy
AUCO Czech Economic Review
Duff, A.: The Treaty of Amsterdam. Sweet and Maxwell, London, 1997.
Swann, D.: European Economic Integration. The Common Market, European Union and Beyond. Edward Elgar, 1996.
Other texts recommended during the lectures.

ADDITIONAL READING:

Journal of European Integration
European Journal of Political Economy
Prague Economic Papers
Avery, G. and F. Cameron: The Enlargement of the European Union. Sheffield Academic Press, 1998.
Dixit A.," "Games of monetary and fiscal interactions in the EMU." European Economic Review, 45(4-6), May 2001, 589-613.
Dixit A. and L. Lambertini, "Monetary-fiscal policy interactions and commitment versus discretion in a monetary union.", European Economic Review, 45(4-6), May 2001, 977-987.
Cooper R. and Hubert Kempf, "Commitment and the adoption of a common currency", International Economic Review, vol. 44, 2003, 119-142.
Courbis, R. and W. Welfe (eds.): Central and Eastern Europe on its Way to European Union, Simulation Studies Based on Macromodels. Peter Land, Frankfurt am Main, Berlin, 1999.
Feldman, A. M.: Welfare Economics and Social Choice Theory. Kluwer Academic Publishers, Boston 1989.
Gross, D.: Towards Economic and Monetary Union. Problems and Perspectives. CEPS, Brussels, 1996.
Hagen, J., Kumar, A. and E. Kawecka-Wyrzykowska: Coming to Terms with Accession. CEPR, EPI, London, 1996.
Molle, W.: The Economics of European Integration. Dartmouth Publ. Comp., Aldershot, 1996.
Kirchner, Emil J.: Decision Making in the European Community. Manchester University Press, 1993.
Swann, D.: European Economic Integration. The Common Market, European Union and Beyond. Edward Elgar, 1996.
Agenda 2000, For a Stronger and Wider Union. Bulleting of the European Union, Supplement 5/97, Brussels 1997.
Other texts will be recommended during the lectures

RECOMMENDED READING WILL BE AVAILABLE ON THE WEBPAGE OF THE COURSE (Reading packages).
Description: "Advanced Economics of European Integration - Microeconomic Aspects" is a Jean Monnet permanent course developed with the support the European Commissions's Jean Monnet Programme. The course focuses on economic theory, methods and outcomes of integration between a group of countries (economies of national states). The course includes the following aspects: historical experience and future prospects of the European Union, welfare effects of trade and economic cooperation, partial and general trade equilibrium, economics of customs union, Common Market, monetary union, regulation and microeconomic policies in the European Union, and institutional economics of the European Union. The course's methodological background is based on general equilibrium theory, welfare economics, and public choice. The course is taught in English.
JEM 081 is an advanced course (4th and 5th year students) intended for the Master level and yielding 6 ETCS credits upon successful completion.
Content: STRUCTURE OF THE COURSE AND GRADING

1. INTRODUCTION TO ECONOMICS OF INTEGRATION (2 lectures)
2. ECONOMIC THEORY OF INTEGRATION FORMS, CUSTOMS UNION, COMMON MARKET AND MONETARY UNION (6 lectures)
3. REDISTRIBUTION AND COMMON ECONOMIC POLICIES IN THE EU (2 lectures)
4. INSTITUTIONAL ECONOMICS OF THE EUROPEAN INTEGRATION (2 lectures)

Lecture 1 (October 1, 2012): Introduction to economics of integration - 1
BASIC CONCEPTS
- Concepts of economic integration
- Global and regional integration
- Forms of economic integration: preferential tariff agreement, free trade area, customs union, single market, common market, economic union, economic and monetary, political union
- Effects of economic integration, trade creation and trade diversion

Lecture 2 (October 8, 2012): Economic theory of integration forms - 1
WELFARE EFFECTS OF TRADE
- Marshallian surplus. Consumers' surplus and producers' surplus.
- Measuring welfare effects, a partial equilibrium approach. Welfare effects of free trade and of trade protection. Tariffs and quotas.
- Multi-commodity markets. Closed equilibrium and welfare analysis on a multi-commodity market.

Lecture 3 (October 15, 2012): Economic theory of integration forms - 2
WELFARE EFFECTS OF TRADE
- Marshallian surplus. Consumers' surplus and producers' surplus.
- Measuring welfare effects, a partial equilibrium approach. Welfare effects of free trade and of trade protection. Tariffs and quotas.
- Multi-commodity markets. Closed equilibrium and welfare analysis on a multi-commodity market.

Lecture 4 (October 22, 2012): GUEST LECTURE BY DR. TOMASZ BRODZICKI (UNIVERSITY OF GDANSK)

ECONOMICS OF MONETARY UNION
- Optimal currency areas.
- Monetary coordination, system of European Central Banks.
- Fiscal coordination: Growth and Stability Pact. Flexible integration.
- Decision making in the EMU.

Lecture 5 (October 29, 2012): DECISION-MAKING IN THE EU (GUEST LECTURE BY MR. PETR NOVAK, EUROPEAN PARLIAMENT)

Lecture 6 (November 5, 2012): Economic theory of integration forms - 4

THE THEORY OF COMMON MARKET - FREE MOBILITY OF PRODUCTION FACTORS
- Common market and single market
- Free mobility of non-labor production factors
- Partial market and general equilibrium approach
- Welfare effects of free mobility

Lecture 7 (November 12, 2012): Economic theory of integration forms - 5

THE THEORY OF COMMON MARKET - FREE MOBILITY OF LABOR
- Free mobility of labor, neoclassical solution
- Propensity to migration
- Welfare effects of free mobility of labor
- Migration in the EU

Lecture 8 (November 19, 2012): Redistribution and common economic policies - 1

BUDGET AND REGIONAL REDISTRIBUTION
- Budgetary rules.
- Budgetary revenues and expenditures.
- Redistribution
- Regional policies and political economy of regional redistribution
- Measuring regional disparities

Lecture 8 (November 26, 2012): GUEST LECTURE BY DR. DENNIS HACKL (Technische Universität Dresden )
Assistant Professor of Economics,
Faculty of Business and Economics
http://www.tu-dresden.de/die_tu_dresden/fakultaeten/fakultaet_wirtschaftswissenschaften/vwl/at/team/haeckl

Environmental Policies of the EU:
- EU and the environment
- Emissions and sustainable development
- Economic aspects of the environmental policies in the EU

Lecture 10 (December 3, 2012), Redistribution and common economic policies - 2
COMMON AGRICULTURAL POLICY

- Why regulation of agricultural markets?
- Income elasticity of demand for food.
- Price elasticity of supply and demand for food and market adjustment.
- Common agricultural policy and welfare effects of regulation.
- Problems and reforms of CAP.

Lecture 11 (December 10, 2011), Institutional economics of European integration - 1

SYSTEM OF EUROPEAN INSTITUTIONS AND LEGISLATIVE
PROCEDURES
- European Union institutions, Commission, Council of Ministers, European Parliament.
- Legislative procedures in the EU. Qualified majority, consultation procedure and co-decision procedure.
- National and institutional influence in the EU.
- Lisbon Treaty.

Lecture 12 (December 17, 2010), Institutional
economics of European integration - 2

MEASURING INFLUENCE IN COMMITTEE SYSTEMS
- Models of committee systems.
- Measuring influence, voting power indices methodology.
- Voting power of EU decision making actors: institutions, member states and European political parties in EU of 27.

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TBC: GUEST LECTURE BY MR. PETR NOVAK
(EUROPEAN PARLIAMENT)

Mr. Petr Novak
(European Parliament, former Assistant to
Andrew Duff, MEP: http://andrewduff.eu)

EU decision-making:

- interest representation,
- institutional processes
- institutions of EU integration
- dynamism of EU Integration
Seminar: Seminars will focus on solving problems (exercises) and conducting students' presentations. Active participation is required. Problem sets will be provided after each lecture similar to those expected in exams. See the course requirements for more information on essays.
Examination dates: There will be a midterm exam in November 13, 2012.

Final tests:

1) First exam: 20.12.2012 from 10:00 until 13:30 (room 0601)

2) Second exam: 8.1.2013: 12:00-15:30 (room 206)

3) Third exam: 15.1.2013: 13:00-16:30 (room 206)

4) Fourth exam: 22.1.2013: 12:00-15:30 (room 206)

5) Markup exam: 29.1.2013: 12:00-15:30 (room 206)

Both midterm and final exams will have written form (test with problems to be solved and questions to be answered).

Conditions for final exam: midterm exam, presentation, essay, active participation at the seminars without not justified absences
Condition for final credit: successful final exam (better than 50% grade)
Weights for final grading
- Midterm exam weight 20%
- Presentation weight 5%
- Essay weight 25%
- Final exam weight 50%
Grades based on weighted grading
EU CZ
90,1%-100% A 1
80,1%-90% B 2
70,1%-80% C 2
60,1%-70% D 3
50,1%-60% E 3
<50 F 4
Course requirements: 1. On the basis of individual presentations during the seminars each student has to prepare a short essay (10-15 pages) on a topic related to methodological and empirical issues of the Economics of European integration.
Deadline for submitting essays is January 5, 2013. Submission of the essay is a necessary condition for all students registered in the course (only those students who will submit essays can register for the final exam). Schedule and topics of presentations and essays should be discussed on an individual basis during the first seminars and consultation hours.

2. Each essay should contain:
First page: Name of the course, title of the essay, author’s name, e-mail address and a short abstract (summary) that should not exceed 100 words.
Structure of essay:
Introduction (with a state-of-the-art of related literature and/or sources of data and main ideas).
Analysis of the problem.
Conclusions.
References/literature/sources.

3. Registration form of presentation and essay topic will be made available on the course’s website
Forms should be submitted to Dr. Wadim Strielkowski and Ondrej Glazar by e-mail before October 22, 2012
Each registration form should contain:
- name and contact details
- title of presentation, essay
- short annotation, literature and sources of data you are planning to use
- suggested date of presentation during seminar

4. Electronic form of essay should be submitted in MSWord or pdf format, single spaced, 12 pt font of the basic text.
Presentation during the seminar is the first step to the essay, you have to present basic ideas and data you are going to use
On the basis of discussion during presentation content of essay should be adjusted

5. You can select topic of your own interest (e.g. case study of something related to your country, case study related to other countries, theoretical problem etc.)
For those who have problem with topic choice there is a list of tentative topics on the course webpage
Downloadable: 00 Results JEM 081 (23.1.2013)
Lecture 10_CAP
Lecture 11_EU Governance
Lecture 12 Calculus influence EU
Lecture 12a_voting paradox
Lecture 1a_Basic concepts
Lecture 1_Course description
Lecture 2a_2012
Lecture 2_2012
Lecture 3 CU_RU BE KZ
Lecture 3 Viner model of CU
Lecture 4_General Equilibrium
Lecture 6_Economics of Common Market
Lecture 7 Free mobility of labour
Lecture 8a_EU budget
Lecture 8b_Regional redistribution
Lecture 9_Prof. Dennis Haeckl (TU Dresden)
Lecture Dr Tomasz Brodzicki (EMU)
Lecture Petr Novak (EP)
Lecture prof. Hans Tummers
List of topics for essays and presentations 2012
Midterm results
PPTs guest lecture Jan Fidrmuc
Presentation Dr Milan Scasny
Presentation manual - WS 2011
Presentation Petr Novak (EP) 29.10.2012
Presentation slots as of 1.11.2012
Reading 20 lecture 10 Oct 2011
Reading for lecture 2_Marshallian surplus
Reading package 1, New institutional economics, Hierarchy of public goods
Reading package 10, Budget of the EU for 2011
Reading package 2, EU in 12 lessons
Reading package 3, Trade blocs and trade blocks
Reading package 4, Economic integration, an Overview
Reading package 5, Customs union, Multicommodity markets
Reading package 6, Stages of economic integration
Reading package 7, Labour migration in common market
Reading package 8, Maastricht criteria
Reading package 9, Regional disparities
Sample essay 1 (Bjorn Koellner)
Sample essay 2 (Ilona Dlouhá)
Sample essay 3 (Terezie Vyprachtická)
Sample essay 4 (Daniar Akhmetov)
Sample final exam
Strielkowski and Turnovec_book chapter
Vysledky JEM081 (ze dne 13.1.2013)