Thinking about the role of market and government

The issue of what the responsibilities of public service (fund raising, building, provision, operation, etc.) should be assigned between public and private sector is a very important theme in the PPP theory. In this course, students study why the government sector intervenes in the market economy (i.e., provision of public service and regulation) from a microeconomic perspective as a preliminary step to learning the PPP theory.

The goal of this course is to enable students to understand the effects of government's involvement or intervention using the basic concepts of microeconomics.

The title and chapter number of textbook in each lecture are as follows. Please refer to the section “Textbooks”.

Week 1: Guidance
Week 2: (introductory chapter) Role sharing between market and government
Week 3: (chapter 1) Overview of economics
Week 4: (chapter 2) Demand and supply
Week 5: (chapter 3) Supply curve
Week 6: (chapter 4) Producer surplus, variable costs, imputed income
Week 7: (chapter 5) Derivation of demand curve and total surplus
Week 8: (chapter 6) Entry regulation
Week 9: (chapter 7) Market intervention
Week 10: (chapter 8) Negative externalities
Week 11: (chapter 9) Economies of scale: monopoly
Week 12: (chapter 10) Positive externalities and public goods
Week 13: (chapter 11) Road and market failure
Week 14: (chapter 12) Labor market
Week 15: Conclusion

　The outline of the lectures after the 2nd week is as follows. In the 2nd week, we will have an overview of economics' thinking on the role sharing between market and government. From the 3rd to the 9th weeks, we will examine the benefits of market mechanisms and the inefficiency of government's unnecessary intervention in the market through analyzing the behavior of consumers and producers. From the 10th to 14th weeks, we will study that market mechanisms are not always versatile and that government intervention is required in some case.

This course will be given in a lecture style. I will upload lecture materials to a website in advance, students should download and bring them. It is not necessary to print them, but you may take a class while viewing the downloaded materials on your smart device. For non-face-to-face participants, we will use WebexMeetings or Zoom, so you will need a device that supports these and an internet connection.

Before each class, students read the textbook and organize issues that can be assumed from the perspective of your practice and activities. After each lecture, students consider how to apply what you have learned in the lecture to your work and activities. Allocate 30 to 60 minutes each for preparation and review. Working graduate students are encouraged to use your actual work and activities to prepare and review.

Your grade is determined by a report according to Toyo University's grade evaluation standards.

None

Hatta, T. (2013) Microeconomics expressway (Japanese title: ミクロ経済学 Expressway), Toyo Keizai Inc., 2,800 JPY (tax excluded).

Kandori, M. (2014) Microeconomics (Japanese title: ミクロ経済学の力), Nippon Hyoron Sha Co., Ltd., 3,200 JPY (tax excluded).

Questions will be accepted in the lecture and by email.