ANIMAL SPIRITS AND BEHAVIORAL ECONOMICS (ASBE)

Elective in Master of Money and Finance (MMF) and Master of International Economics and Economic Policy (MIEEP)

In this course we will introduce a few departures of the rational model of economic decision making. Behavioral economics adds insights from psychology to economic models. We will study a couple of behavioral biases, and apply these concepts to some economic questions. The focus is on topics that are traditionally macroeconomic in nature: central banking, unemployment, inflation, and saving. We will use the book "Animal Spirits", by Akerlof and Shiller (2009). In addition we will discuss the research on which the book is based. The first six lectures will be devoted to introducing several findings from behavioral economics. In the last eight classes we will discuss relevant policy questions.
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APPLIED ECONOMETRICS: LIMITED DEPENDENT VARIABLES (APEC)

Elective in Master of Money and Finance (MMF) and Master of International Economics and Economic Policy (MIEEP)

Many interesting economic outcomes are not continuous. Variables can be binary (e.g. to save or not to save), represent multiple choices (which retirement savings plan to choose), or are limited by nature, or observation (in a typical cross-section, many households have zero savings). Ordinary least squares often is not the right method to analyze limited dependent variables. This course will provide a hands-on instruction of techniques, with empirical examples and learning by doing in the computer lab. The methods you will learn are used in marketing, labor economics, public economics, household finance and industrial organization among others. Many examples we will study in detail are in the field of household finance: for example portfolio decisions, stock market participation, mortgage choice, and retirement savings.

Every second week there will be a tutorial in the computer lab, where Stata will be instructed to apply the techniques learned in class. The homework will be Stata-exercises. Some basic knowledge of econometrics, statistical testing and Stata is needed to follow the course.
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ECONOMICS OF LABOR MARKET INSTITUTIONS (ELMI)

Elective in Bachelor Economics and Business Administration

This course offers an introduction to modern labor market economics. On the one hand, the course offers analytical tools how to assess the efficiency of the labor market. On the other hand, the course gives an overview of "real-world" economics by showing differences in labor markets between countries. In some countries there are strict rules about the hiring and firing of workers. In some countries unions are well organized and influential, in others union membership is low. Some countries have high minimum wages, others have no minimum wage at all. Not only do institutions differ by country, the labor market outcomes in terms of unemployment, participation, job creation, wage distribution differ as well. We will study the empirical evidence, economic models and policy issues.
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