IDEC8081 The Economics of Incentives and Institutions
| Offered By | International and Development Economics Program |
|---|---|
| Academic Career | Graduate Coursework |
| Course Subject | International and Developmental Economics |
| Offered in | Winter Session, 2010 |
| Unit Value | 6 units |
| Course Description |
This course is an introduction to the economics of incentive contracts, and the economics of institutions. The initial topics involve the study of incentive contracts when an economic agent's work efforts cannot be observed. Applications to managerial and employee contracts, sharecropping, incentives for teams of employees, and yardstick regulation of firms are covered. The topic is important both for studying private sector contracts, and for providing insight into how contracts might be designed to motivate public sector workers, or managers of regulated firms. The second set of topics covers the economics of institutions. Stress is given to the property rights model of the firm. This topic gives insights into why centralization of production can often lead to inefficiency, by presenting students with an explanation of why the size of a private firm will be naturally limited. Following on with this approach, recent models of private versus public ownership of assets, and a model of the delegation of authority in organisations are presented. The former topic is useful for privatization policy, and the latter for gaining insight into the nature of authority. |
| Course Classification(s) | AdvancedAdvanced courses are designed for students having reached 'first degree' level of assumed knowledge, which provide a deep understanding of contemporary issues; or 'second degree' and higher levels of knowledge; or for transition to research training programs. and SpecialistSpecialist courses are designed for students having reached 'first degree' level of assumed knowledge, which provide for the acquisition of specialist skills; or 'second degree' and higher level of knowledge; or for transition to research training programs; or knowledge associated with professional accreditation. |
| Areas of Interest | Economics |
| Programs | Master of Economics of Development, Master of International and Development Economics, and Master of International Trade and Economic Relations |
| Academic Contact | Dr Michael Ward |
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