ECONOMICS COURSE SYLLABUS - IE - · PDF fileECONOMICS COURSE SYLLABUS MANDATORY COURSES ......

ECONOMICS COURSE SYLLABUS

MANDATORY COURSES

Subject: Linear Algebra Code: IEE106

Prerequisites: --- Duration: 60h

Geometry of R3: dot product, cross product, equations for a line and a plane. Vectors: sum, intersection, dimensions. Matrices and linear equation systems: solution spaces, linear varieties. Determinants: polyhedral volumes in Rn. Euclidean spaces: inner product, orthogonal projections, linear transformations – isomorphism, linear algebra, rotation and reflection. Invariant subspace and diagonalization: eigenvalues and eigenvectors. Quadratic forms: theorems of equivalence, classification of surfaces, types of quadratic forms.

Subject: Introduction to Economy – Macroeconomics Code: IEE205


Macroeconomics scope and method. Basic notions of macroeconomic aggregates: currency and monetary aggregates; national accounting; employment; inflation. Introduction to the calculation of GDP in a closed economy: equilibrium level of GDP and the multiplier; public sector, public deficit and fiscal policy; monetary policy, interest rates and the calculation of the output. Introduction to the calculation of GDP in an open economy: basic notions of exchange rates and exchange rate regimes; aggregate demand; economic policy in an open economy.

Subject: Introduction to Economy – Microeconomics Code: IEE107


Microeconomics scope and methods. Introduction to the theory of consumer choice: budget constraints; personal preferences and utility; consumer choice; individual demand and market demand. Introduction to the theory of production: technological constraints; isoquant curves; profit maximization. Introduction to the theory of the firm: long-run and short-run cost curves; long-run and short-run firm supply; industry supply, market equilibrium and consumer surplus.

Subject: General Economic History I Code: IEE114


The feudal system and transition to capitalism (1000-1700 BC): feudalism, transition and the two logistics; population; the growth and expansion of commerce and urban centers; production structures and technologies; succession of hegemonic powers (Portugal, Spain, Holland, France, England). The Industrial Revolution in England: concept of and debate on the Industrial Revolution; its origins in England (countryside and proto-industry, domestic and international markets, bourgeois revolutions); technological change; railways; trade; industry; banks. The Second Industrial Revolution: second wave of innovations; compared industrial experiences (Germany, France, Russia, USA, Japan); from the 19th century Great Depression to World War I.

Subject: Math I Code: MAC111


Sequences, limits, continuity. Differentiation: definition, rules, applications, L'Hospital's Rule. Taylor polynomials. Two and three variable functions: graphs; level curves; limit; continuity; partial derivatives; tangent plane; chain rule; global maximum and minimum; local maximum and minimum; Lagrange multipliers.

Subject: Complimentary Activity Code: IEEX01

Prerequisites: --- Duration:

Scientific initiation; monitorship; extension initiatives; attendance at conferences and seminars; internship at a junior company; academic publication.

Subject: Accounting and Balance Sheet Analysis Code: ACC121


Economic and mathematical introduction to the double-entry bookkeeping system. Accounting equations. Goals of balance sheet analysis; data sources for balance sheet analysis; balance sheet analytical methods.

Subject: Introduction to Social Sciences Code: FCP119


Human nature and social order. Origins of modern social thought: the Renaissance and Humanism. Machiavelli. State and Politics. The individual as a subject of knowledge and a precondition of the social order. Rationalism and empiricism. State by contract. The Enlightenment. Individual freedom, tolerance and progress. Citizenship, representation and the limits of government. The birth of Economics as a field of knowledge. The homo oeconomicus and the market as a social system.

Subject: General Economic History II Code: IEE124

Prerequisites: IEE114 Duration: 60h

The capitalist economy until World War II: geopolitical context, the emergence of socialism. Post-WW II boom: socio-economic changes; the Cold War; the decolonization process. The crisis of capitalism from the 1970s onward and its economic, political and ideological impacts. The end of Cold War and the crisis of socialism.

Subject: Math II Code: MAC121

Prerequisites: MAC111 Duration: 90h

Indefinite and definite integrals. Exponential functions and logarithms. Integration techniques. First order and second order ordinary differential equations with constant coefficients. Numerical and power series. Taylor series. Double integrals.

Subject: Microeconomic Theory I Code: IEE206

Prerequisites: MAC111, IEE107 Duration: 60h

Theory of consumer choice: first-order and second-order conditions; comparative statics; revealed preferences; income and substitution effects; Slutsky and Hicks equations; inter-temporal choice; demand. Theory of production: the production function; cost minimization; profit maximization. General equilibrium in a competitive market; general equilibrium of production and exchange; properties of general equilibrium. Welfare, externalities and supply of public goods: welfare and allocative efficiency; Coase’s theorem.

Subject: Macroeconomic Theory I Code: IEE207


The IS-LM model: equilibrium in a goods market and the IS curve; equilibrium in the money market and the LM curve; the calculation of GDP and the interest rate; monetary and fiscal policies in the IS-LM model; introduction to the IS-LM model in an open economy. The aggregate demand-aggregate supply model: aggregate demand curve; aggregate supply curve; measuring the output, the employment and price levels; Phillips Curve: the relation between unemployment and inflation and the implications for economic policy.

Subject: Political Science Code: FCB119

Prerequisites: FCB119 Duration: 60h

Kant, Tocqueville, Stuart Mill and the debate on politics in the 19th century: freedom; democracy; equality; representation. Class struggle and the political power in Marxism: Marx; Lenin and Gramsci. State, authority and political domination in Weber’s theory. Schumpeter and the democracy: rules and procedures. Rationalism and collective action. Karl Polanyi and the crisis of liberalism. The Welfare State and the late capitalism. The financialization of the capital in the 20th century: State and neo-liberalism.

Subject: Monetary Economics I Code: IEE351


Currency, monetary standard and monetary policy: functions of money, legal tender and medium of payment; monetary standard. Central Bank: origins and functions; monetary base. Commercial banks: the banking business; types of banks; creation of new money and increase of media of payment; non-banking financial institutions. Instruments of monetary policy: direct controls, discount rate and Lombard credit; open market operations. Monetary policy targets: monetarism; Keynesianism; monetary policy transmission channels. Monetary policy in an open economy: floating currency; fixed currency. Relevant experiences.

Subject: Political Economy I Code: IEE105

Prerequisites: FCB119 Duration: 60h

Origins of Classical Political Economy. The Physiocracts. Adam Smith: division of labor and the free market society; theories of value and distribution; the process of capital accumulation and Smith’s notion of economic development; the role of free-market mechanism according to Smith. David Ricardo: theories of distribution and value; international trade and the theory of comparative advantages; process of capital accumulation and the Malthus versus Ricardo controversy.

Subject: Introduction to Economic Statistics Code: IEE231


Descriptive statistics; measures of central tendency; measures of variability or dispersion; measures of association. Probability theory: preliminary concepts; conditional probability and independence. Random variable: probability distribution and density; relevant discrete random distributions; relevant continuous random distributions; function of a random variables. Mathematical expectation of a random variable. Covariance and correlation. The Cauchy-Schwarz inequality. Conditional distributions. Variance and conditional expected value. Formulae for the variance. The law of large numbers and Chebyshev's inequality. Introduction to the central limit theorem.

Subject: Macroeconomic Theory II Code: IEE221


Theory of consumption. Theory of investment. Inflation and unemployment. Stabilization policies. Business cycles.

Subject: Microeconomic Theory II Code: IEE350


Cost curves: cost functions; long-term and short-term supply curves. Market structures: perfect competition; monopoly and monopolistic behavior; the market for factors of production; oligopoly. Game theory and interaction between economic agents: extensive-form and normal-form games; static games of complete information. Information asymmetry: the principal–agent problem; adverse selection; moral hazards. Extensions of the theory of choice: uncertainty; choice under risk; asset market.

Subject: Industrial Economics Code: IEE471


Basic concepts of firm, industry and market; the structure-conduct-performance paradigm; the concept of competition. Management fundamentals. Determinants of market structure: economies of scale; concentration measures; product characteristics; stochastic determinants of market structures; degree of diversification and integration. Competitive standards and pricing in the industry: degree of monopoly and mark-up rules; limit pricing; contestability of markets; entry-prevention strategies; competition standards of the industry. Theory of the firm: goals of the firm; growth and funding of the firm; internal organization of the firm – the institutional approach; diversification, integration and conglomeration. Dynamics of firms and markets: technological progress and competition; dynamics of industry structures; firm growth strategies. Government intervention: regulation; competition policy; industrial policy.

Subject: International Economics Code: IEE201


Balance of payments accounts. Concepts and theories of exchange rate determination. Exchange rate regimes. The IS-LM model for an open economy under different exchange rate regimes and different degrees of capital mobility (Mundell-Fleming model). Internal and external equilibrium: economic policy dilemmas. Exchange rate crises and external adjustment. Notions of international monetary and financial systems. Introduction to the process of financial globalization and its implications.

Subject: Monetary Economics II Code: IEE361


The beginnings of monetary theory: the different versions of the quantitative theory of money (Fisher, Cambridge and Wicksell). Keynes’ monetary theory: prices, interest rates and the demand for money. Models of the demand for money: Baumol’s, Tobin’s and Friedman’s. Monetary policy and inflation: interpretations of the Phillips Curve by different schools of thought (neo-classical, monetarism, new classical, new Keynesian and post-Keynesian). The heterodox approach to inflation: inertial inflation; role of expectations of future inflation; role of demand for money. Heterodox stabilization programs: shock therapies; income policy; stabilization by means of an exchange rate or a monetary anchor.

Subject: Political Economy II Code: IEE230


Marx’s economic theory and its subsequent developments: value, money and capital; labor process and the realization of surplus value; the development of productive forces of capitalism; capitalist accumulation and reproduction; competition, prices of production and the tendency of the rate of profit to fall.

Subject: Economic Statistics and Introduction to Econometrics

Code: IEE240


Sampling frame and sampling distributions for discrete and continuous variables. Sampling statistics. Median and variance distributions. Confidence intervals. Modes of convergence of random variables. Convergence in distribution and probability. Estimators and estimates. Efficiency: the Cramer-Rao bound. Estimation methods: maximum likelihood. Least squares. Small sample and large sample hypothesis testing. Unilateral and bilateral tests. The power function. Test of a median with known and unknown variance (t-Student). Chi-square test for the variance (X2). Comparison of two independent normally distributed populations (F-test, Fisher). The adjusted Pearson statistic test and likelihood-ratio test.

Subject: Theories on the Dynamics of Capitalism Code: IEE204


The principle of effective demand according to Keynes: determining employment and income levels; uncertainty and expectations; liquidity preference; investment decisions; portfolio choice. Minsk’s notion of financial market fragility. Kalecki’s theory of income distribution; effective demand and the determination of profit and income; the dynamics of business cycles and development: economic development as a process of creative destruction.

Subject: International Trade and Investment Code: IEE202


Theory of international trade: the Ricardian model of comparative advantages; specific factors model and income distribution; the Heckscher-Ohlin model; economies of scale and international trade; monopolistic competition and intra-industry trade. International movement of factors of production: the mobility of labor; loan capital and inter-temporal comparative advantage; foreign direct investment and the theory of multinational enterprises. Trade policy: instruments of trade policy; the political economy of trade policy; international negotiations and regional agreements; trade policy, industrial policy and development.

Subject: Econometrics I Code: IEE233


Special topics on the linear regression model. Estimation with linear restrictions; dummy variables; multicollinearity; introduction to the asymptotic theory. Heteroskedasticity: best linear unbiased estimator; iterative method: testing for homoscedasticity. First-order autoregressive model: estimation; best linear unbiased estimator; iterative method; the Durbin-Watson test. Generalized linear regression model: Aitken’s generalized least squares; consistent estimation: special cases. The seemingly unrelated regression model: estimation; testing for contemporaneous correlations; testing linear restrictions on coefficients.

Subject: Origins of Brazilian Economy Code: IEE306


The debate on the colonial legacy: the main interpretations of the origins of Brazil’s economy. The scope of colonial economy: sugar production, cattle production, mining. The crisis of colonial economy. The economy in the 19th century imperial period. The end of the empire and the Brazilian economy in the beginning of the 20th century.

Subject: History of Economic Thought Code: IEE480


Retrospective of the classical theory. The marginal revolution. The Marshallian approach to partial equilibrium. The general equilibrium theory. Selected topics on the history of economic thought since de 1920s.

Subject: National Accounts Code: IEE305


Macroeconomics and the system of national accounts. Main measures of economic activity: gross value of domestic output; the concept and measures of value added; nominal and real output. GDP deflator and price index. Relations between balance of payments accounts and National Accounts indicators. Basic macroeconomic identities. The United Nations System of National Accounts. The Brazilian System of National Accounts, managed by the Brazilian Institute of Geography and Statistics (IBGE). Integration into financial statistics: flow of funds matrix. Cross-sector relations: basic hypotheses and theoretical model. Analysis of matrices for Brazil. Integrated accounts: limitations of the SNA; economic assessment of social assets; new proposals – environmental accounts, Human Development Index (HDI) and other measures. Short-term predictors of the economy: quarterly GDP; industry surveys; agriculture surveys; trade surveys; employment surveys; personal income surveys. Previous indicators.

Subject: Contemporary Brazilian Economy I Code: IEE301

Prerequisites: IEE306,0IEE124, IEE201 Duration: 60h

The First Republic, from the Encilhamento to World War I: coffee and currency overvaluation policies; the development of industries. Brazil in the interwar period: economic growth and stagnation in the 1920s; the crisis of 1929. The Brazilian economy in the 1930-45 period: reorientation of economic policy; the emergence of the developmentalist State; international relations; the expansion of industrialization. Development in the post-World War II period (1945-64): the debate on industrialization and stabilization; import substitution; structural limitations and changes.

Subject: Economics of the Public Sector Code: IEE303


State, market and public economics. Nature of public goods and government intervention in resource allocation. Government intervention in the distribution of income. Government intervention in stabilization. Public expenditure. Funding the functions of the government. Taxation: theoretical and practical aspects. Fiscal federalism: the sharing of public revenues and expenditures. The crisis of the State and recent changes in government functions.

Subject: Economic Analysis Methodology Code: IEE473


Introduction to the Philosophy of Science: positivism, Popper, Kuhn, Lakatos and recent research topics. Economic methodology: an overview of the main contributions by 19th and 20th century researchers and recent research topics. Fundamentals of economic ethics.

Subject: Contemporary Brazilian Economy II Code: IEE302


Political crisis, institutional reforms and structural changes in Brazil’s economy in the 1960s: the reforms undertaken by Castello Branco and the expansion of the period 1968/73. The international crisis of the 1970s and Brazil’s reaction to it. Brazil in the 1980s: external crisis, economic adjustment policies and stabilization plans. The strategies of Brazil’s economy in the 1990s: economic reforms, redefinition of the role of the State and stabilization policies. Current dilemmas.

Subject: Introduction to Law in Economics Code: IUF212


Introduction to Law. Logic differences between Law and Economics. Basic principles of the legal system functioning; public and private law; different branches of Law. The 1998 Constitution of Brazil: the form of the State; functions of the government; structure and composition of the Federal Executive, Judiciary and Legislative branches; types of law and hierarchy of laws; fundamental rights and respective constitutional binding instruments; the Economic Order in the Constitution. Introduction to constitutional tax law: basic concepts and principals of Brazil’s tax system; shared jurisdiction to tax and collect. Topics on administrative law: centralized and decentralized administrative agencies of government; public services supply in Brazil; recent institutional reforms; administrative contracts and basic notions of the public bid law. Consumer protection: basic consumer rights; structure of the consumer protection system in Brazil. Competition protection: repressive and preventive actions; legal instruments for conduct and structure control – law enforcement institutions.

Subject: Economic Research Techniques Code: IEE475


Scientific investigation methods: historical, qualitative and quantitative methods. Drafting research project proposals. Data collection techniques: literature review and surveys. Qualitative data analysis techniques. Research fields. Students’ aid to choose the monograph theme and supervisor. Rules to presenting the monograph proposal. Drafting the monograph proposal.

Subject: Socio-economic Development Code: IEE304


Economic growth: stylized facts. R. Solow’s model of economic growth. Extensions of Solow’s model. Endogenous growth. Economic growth in the classical theory of development. Demand-led growth. External constraints to economic growth.

Subject: Compared Development Experiences Code: IEE474

Prerequisites: IEE201, IEE202, IEE304 Duration: 60h

Convergence and divergence in the global economy. Alternative approaches to the economic development process. Development experiences prior to the 20th century. Development experiences in the 20th century. Current trends.

Subject: Monograph in Economics Code: IEEK03


Supervised review of the monograph proposal. Supervised literature review and writing of the monograph. Degree requirements imply that the student’s monograph be approved by a commission formed by designated professors.

ELECTIVE COURSES

Subject: Econometrics II Code: IEE423


Stochastic and linear processes. Time series: definition and examples. ARMA stationary processes; unitary roots; trends; seasonality and cycles; vector autoregressive (VAR) models; cointegration; autoregressive vector error correction model (VECM).

Subject: Financial Mathematics Code: IEE624


Capitalization with simple and compound interest; interest rate: nominal interest rate, proportional interest rate, effective interest rate and equivalent interest rate. Models of compound discount and simple discount; inflation; deflation and indexation. Exchange rate variation; annuities or series of payments; depreciation; loans and amortization; amortization systems; introduction to investment analysis.

Subject: Financial Economics I Code: IEE604


Value assessment over time; models of pricing variable and fixed income bonds; financial risk analysis and management; theory of optimal portfolio; equilibrium model of the stock market.

Subject: Financial Economics II Code: IEE616


Fundamentals of the foreign exchange market and the derivatives market; term structure of asset pricing; main futures contracts; options pricing; options investment strategies.

Subject: Macroeconomic Analysis III Code: IEEs67


Cycle and trend. Inertial Phillips Curve; J. Tinbergen model; effective market classification; additive uncertainty (certainty equivalence) and multiplier uncertainty; choosing monetary policy instruments. Rational expectations: Phillips Curve. The New Consensus (NCM): basic model and the optimal monetary rule; Taylor rule; fiscal and monetary policies; optimal monetary policy in an open economy – floating and fixed exchange rate; monetary policy and the term structure of interest rates; credit channel of monetary policy. Monetary policy in the post-crisis period.

Subject: Competition and Firm Growth Code: IEE007


Competition as a dynamic process. Economic concentration as a result of competition dynamics. The resource-based firm. Sustainability of a firm's asset position. Applications. Dynamic capabilities, the knowledge-based firm. The funding of firms. The expansion of the firm, diversification. Transnational firms. Supply chains and strategic alliances.

Subject: Game Theory and Organizational Theory Code: IEE601


Static representations and dynamic representations in strategic games; perfect information; imperfect information; complete information; incomplete information; strategies and payoffs; theory of choice under uncertainty; game theory and organizational theory: unexplored themes.

Subject: Economics of Technology Code: IEE415


Economic theories of technology; innovation and technological diffusion; sources of technology in the firm; sector of activity; firm size and geographic location; innovation and international competitiveness; innovation and competitive strategy; integration between competitive strategy and technological capabilities; inter-firm networks and supply chains; innovation management in the knowledge economy.

Subject: Economics of Agriculture I Code: IEE422


Technological innovation in agriculture: sector integration and the regional issue; relation between agriculture and industrial sectors; discontinuities in agricultural production; the dynamics of agro-industrial markets. The dynamics of capital in agriculture in Brazil and its uneven and combined development: agro-industrial complexes; the dynamics of capital in the agricultural frontier; commercial capital and the “underdevelopment” of rural areas. Labor division and types of work organization in agriculture. Land reform, family-based production and rural settlements.

Subject: Applied Environmental Economics Code: IEE626

Prerequisites: MACC111, IEE1206 Duration: 60h

Natural resource economics: the concepts of non-renewable resources and renewable resources. Model of optimal resource extraction: Hotelling's rule (natural resources); Fisher/Faustmann model (forest); model of optimal management of fishing resources. Economics of pollution: externalities. Coase’s theorem. The polluter pays principle. Economic instruments. Economic assessment of natural resources and environmental damages: main methods of economic assessment of natural resources. Environmental indicators. Environmental statistics and their use in natural resource management models. The environment and the international relations.

ECONOMICS COURSE SYLLABUS - IE - · PDF fileECONOMICS COURSE SYLLABUS MANDATORY COURSES ......

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