The course consists of two modules of 30 hours each, the first of which is taught in English
Module I
- alternative theories of primary income distribution and employment
- Harrod and Solow's growth models and demand-led growth
- Technical change. employment and growth
Module II
- the impact of labour market reforms and macroeconomic policies: theory and empirical evidence
- the interpretation of the changes in income distribution and their impact on employment and growth
- Employment and wages in Italy
During the course, data and results of empirical literature will be presented along with theoretical approaches.

Various papers and essays collected in hand-outs available at the library. English alternatives to the Italian readings are suggested to foreign students. Below the detail:

INTRODUCTORY - FOUNDATIONS:
hand-outs with copy of:
Fabio Petri, "What capital theory can teach us"
Pierangelo Garegnani "Two routes to effective demand"
Antonella Stirati “Unemployment, institutions and the living standard in the classical theory of wages”
Antonella Stirati “Employment theories from Adam Smith to the present: an overview”

PART II PRODUCTIVITY EMPLOYMENT AND GROWTH:
R. Harrod, "An essay on dynamic theory
R. Solow, "A contribution to the theory of Economic growth
Cesaratto, Serrano e Stirati “Technical change, effective demand and employment”
N. Kaldor, On the causes of slow growth in UK
A. Okun “Potential GNP: its measurement and significance”
“Puzzles, paradoxes, and regularities: cyclical and structural productivity in the United States (1950-2005)” di Jeon e Vernengo, da pag. 237 a 243

Some hints of statistical inference and linear algebra
The multiple linear regression model. Interpretation and comparison of regression models. Least squares and maximum likelihood estimators. Heteroschedasticity and autocorrelation, multicollinearity, non-deterministic exogenous variables and instrumental variables method, incorrect model specification, stability of the regression function and use of dichotomous variables.
Panel data models: fixed effect models and random effect models. Within and between estimators. Heteroschedasticity and autocorrelation tests. Dynamic models for panel data: Arellano-Bond estimator.
Models with lagged variables: dynamic regression models, distributed lag models.
Introduction to time series analysis: stochastic processes, stationarity and autocovariance function, moving average and integrated autoregressive processes (AR, MA, ARMA, ARIMA), the Box and Jenkins procedure.

Students can refer to the following texts (the first three can be considered alternative to each other)
1) Introduzione all'Econometria, J. H. Stock, M. W. Watson, Ed. Pearson
2) Econometrica, J. Johnston, Ed. Franco Angeli
3) Econometria, M. Verbeek, Ed. Zanichelli
4) Lectures on advanced econometrics, L. Pieraccini, Ed. Aracne
5) Introduction to Time Series Analysis and Forecasting, D. C. Montgomery, C. L. Jennings, M. Kulahci, Ed. Wiley

Some of the topics discussed in the course can also be found in
Introductory Econometrics for Finance, C. Brooks, Cambridge University Press

For background references to statistical inference and linear algebra students can refer:
Fondamenti di Inferenza Statistica, L. Pieraccini, Ed. Giappichelli
Matrix Differential Calculus in Statistics and Econometrics, J. R. Magnus, H. Neudecker, Ed. Wiley Series in Probability and Statistics

For applications with R, students can refer to one of the following texts
Introductory Statistics with R, P. Dalgaard, Ed. Springer
An Introduction to Applied Multivariate Analysis with R, B. Everitt, T. Hothorn, Ed. Springer

Some hints of statistical inference and linear algebra
The multiple linear regression model. Interpretation and comparison of regression models. Least squares and maximum likelihood estimators. Heteroschedasticity and autocorrelation, multicollinearity, non-deterministic exogenous variables and instrumental variables method, incorrect model specification, stability of the regression function and use of dichotomous variables.
Panel data models: fixed effect models and random effect models. Within and between estimators. Heteroschedasticity and autocorrelation tests. Dynamic models for panel data: Arellano-Bond estimator.
Models with lagged variables: dynamic regression models, distributed lag models.
Introduction to time series analysis: stochastic processes, stationarity and autocovariance function, moving average and integrated autoregressive processes (AR, MA, ARMA, ARIMA), the Box and Jenkins procedure.

Students can refer to the following texts (the first three can be considered alternative to each other)
1) Introduzione all'Econometria, J. H. Stock, M. W. Watson, Ed. Pearson
2) Econometrica, J. Johnston, Ed. Franco Angeli
3) Econometria, M. Verbeek, Ed. Zanichelli
4) Lectures on advanced econometrics, L. Pieraccini, Ed. Aracne
5) Introduction to Time Series Analysis and Forecasting, D. C. Montgomery, C. L. Jennings, M. Kulahci, Ed. Wiley

Some of the topics discussed in the course can also be found in
Introductory Econometrics for Finance, C. Brooks, Cambridge University Press

For background references to statistical inference and linear algebra students can refer:
Fondamenti di Inferenza Statistica, L. Pieraccini, Ed. Giappichelli
Matrix Differential Calculus in Statistics and Econometrics, J. R. Magnus, H. Neudecker, Ed. Wiley Series in Probability and Statistics

For applications with R, students can refer to one of the following texts
Introductory Statistics with R, P. Dalgaard, Ed. Springer
An Introduction to Applied Multivariate Analysis with R, B. Everitt, T. Hothorn, Ed. Springer

First Module (30 hours)
1. Money, monetary institutions and the financial markets
2. The demand for money
3. The supply of money and the debate on its endogeneity
4. The equilibrium of the financial sector
5. The structure of the interest rates

Second Module (30 hours)
6. Money, prices, and output
7. The transmission channels of the monetary policies
8. The Gibson Paradox
9. Rules and discretion
10. Money and public finance

Bank of England, Quarterly Bulletin, Q1, 54, 1, 2014, pp. 4-28 (Module 1)
N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”,
The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
J. Tobin, “Liquidity Preference as Behavior Towards Risk”, The Review of Economic Studies 25, 2, 1958, pp. 65-86 (Module 1)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).

A) Investment decisions
1. decision theory under uncertainty and risk premium measures
2. financial options: theory, pricing models, risk-return
3. contingency theory analysis applied to corporate finance: a) corporate capital in terms of options, betas and debt agency costs; b) risk-credit models à la Merton; c) credit derivatives and credit default swap (CDS)
4. real options: types (growth, scope-down, downsizing, defer-learn, etc.), valuation techniques and examples in evaluation of investment projects and firms
5. mergers and acquisitions: theory, determinants, international empirical evidence, performance
B) Capital market
1. CAPM in imperfect markets: taxes, transitional costs, not homogeneous expectations
2. how to empirically test CAPM
3. beyond CAPM: multi-factor models (Fama-French approach)
C) Financing decisions
1. key determinants of the capital structure choice
2. international empirical evidence: research strands and main empirical findings
3. international comparisons on real corporate financial structure, worldwide
4. IPOs and main features
5. dividend policy: theories and financing relationships
D) Ownership models and corporate governance
1. types of ownership and CG system
2. cross-country and trend comparative analysis about CG systems in USA, Europe and World and respective empirical evidence
3. the finance of small business.

1. Berk J., De Marzo P., 2017, Finanza aziendale 1, IV Edition, Pearson, ch.17 and §§ 13.1, 13.6, 13.7 (pp.496-497)
2. Berk J., De Marzo P., Morresi O., Venanzi D., 2018, Finanza aziendale 2 –Teoria e pratica della finanza moderna, IV Edition, Pearson, chs. 1-2-3-4-6-7-10-11-13-14 e § 12.8.

In addition, slides, notes, exercises, cases, data and other teaching materials provided from the teacher on the course website (the requested passwords are provided). The program includes the exercises/problems and other materials at the end of textbook chapters or downloadable from both course and textbook websites.

The course is aimed at students who want to deepen their knowledge and acquire quantitative tools on risk analysis and management in the financial markets (including the government bond and derivative markets), as well as in the energy and insurance markets, also in light of the problems and weaknesses of the models currently used emerged over the years from the various financial crises and the formation of bubbles.

Program
-The completeness and incompleteness of the markets
-The assumptions underlying the Black-Scholes-Merton model and the alternative valuation models to it
-Arbitrage and hedging techniques
-Greek Letters
-Value at Risk and its generalizations
-High Frequency Trading
-Volatility smiles
-Insurance derivatives
-Risk management in energy markets
-Atmospheric derivatives
-Swaps contracts
-Interest rate derivatives (standard models, short-term rate models, advanced models)
-Real Options
-Exotic Options
-Credit derivatives

John C. Hull, Options, Futures and other Derivatives, Ed. Pearson

The main topics of the course are as follows:

- The investment environment and process: securities, stock exchanges and financial intermediaries
- Securities and markets: the buying and selling process, types of orders, price formation, transaction costs, short sales.
- Market indexes: construction and analysis.
- Market efficiency: weak, strong and semi-strong efficiency, investor behaviour.
- Financial analysis of common stocks: fundamental analysis vs. technical analysis – principles and main techniques (DDM, multiples, trading rules).
- Equity portfolio selection and analysis: the process of constructing and analysing efficient portfolios, CAPM and factor models; investment and portfolio management strategies (passive vs. active strategies, growth vs. value strategies, fundamental vs. technical strategies, momentum strategies, tax efficient strategies, anomalies).
- Evaluation of portfolio performance and risk:
o Return measurement: TWR vs. MWR; one period vs. multiperiod.
o Risk measurement: absolute, downside, relative risk.
o Risk-adjusted measures of performance.
o Assessing skill: stock selection vs. market timing; distinguishing skill from luck.
o Performance attribution.
- Bond analysis and portfolio management strategies:
o Bond market.
o Valuation of standard and structured bonds.
o Yield curve, term structure theories and their empirical evidence.
o Determinants of yield spreads and default prediction models.
o Bond portfolio management: indexing strategies, interest rate anticipation strategies, credit risk strategies.
- Derivatives contracts: options, futures and swaps markets; strategies with derivatives.
- Asset management industry (investment firms and mutual funds): categories, strategies, fees, performance.

Reilly, F.K., Brown, K.C., Leeds, S.J., 2019. Investment Analysis and Portfolio Management, 11th Edition, Cengage Learning

or

Bodie, Z., Kane, A., Marcus, A. J., 2018. Investments, International Edition, 11th Edition, McGraw-Hill.

The course will present alternative theories of primary income distribution and employment and draw their implications for
- the analysis of growth,
- the causes and effects of technical change
- the impact of labour market reforms and macroeconomic policies
- the interpretation of the changes in income distribution and their impact on employment and growth
During the course, data and results of empirical literature will lso be presented.

Collected papers and notes: part I: Alternative approaches- Foundations and part II Growth models
The materials for the course are available at the Library

1. Introduction (2 hours)
1.1 Premises for a comparative study
1.2 Forms of fund channelling
1.3 Classification of financial systems
1.4 Changes in today’s financial systems

2. The Historical Development of Financial Systems (2 hours)
2.1 The first stages of financial systems
2.2 Credit vs mutual aid
2.3 Early Financial Systems
2.5 The birth of modern financial systems

3 Market-oriented Systems (8 hours)
3.1 The UK financial system
3.1.1 Banks in the UK
3.1.2 Building societies
3.1.3 Insurance companies
3.1.4 Pension funds
3.1.5 Unit trusts
3.1.6 Investment trusts

3.2 The US financial system
3.2.1 Deposit-taking institutions
3.2.2 The Federal Reserve System
3.2.3 Non-depository institutions


4. Bank-oriented Systems (14 hours)
4.1 The German financial system
4.1.1 Banks and other deposit-taking institutions
4.1.2 Non-deposit institutions
4.1.3 The use of bond and equity markets in Germany

4.2 The French financial system
4.2.1 The French banking system
4.2.2 Specialist and non-deposit institutions
4.2.3 Financial markets in France

4.3. The Italian financial system
4.3.1 The development of the Italian financial system
4.3.2 The current position of the Italian financial system 141

4.4. Financial systems in Northern Europe
4.4.1 Banking systems in the Nordic countries
4.4.2 Other financial intermediaries in the Nordic countries
4.4.3 The evolution and integration of financial systems in Scandinavia
4.4.4 Monetary policy strategies in the Nordic countries

4.5. The Eurozone and the Banking Union
4.5. The Japanese financial system

5. Other kinds of financial systems (8 hours)
5.1 China’s banking and financial markets
5.2 The Russian banking and financial system
5.3 Islamic finance
5.4 African financial system: an overview

6. Follow-up issues (26 hours)
6.1. Intertemporal smoothing
6.2. Information and resource allocation
6.3. The Limitations of Markets: The Classical View
6.4. Corporate Governance
6.5. Competition in banking
6.6. Self-financing firms
6.7. Corporate savings
6.8. Bubbles and financial crises
6.9. Liquidity in asset markets and market crashes

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008

Allen F., Gale D, Comparing Financial Systems, MIT Press, 2000.

First Module (30 hours)
1. Money, monetary institutions and the financial markets
2. The demand for money
3. The supply of money and the debate on its endogeneity
4. The equilibrium of the financial sector
5. The structure of the interest rates

Second Module (30 hours)
6. Money, prices, and output
7. The transmission channels of the monetary policies
8. The Gibson Paradox
9. Rules and discretion
10. Money and public finance

Bank of England, Quarterly Bulletin, Q1, 54, 1, 2014, pp. 4-28 (Module 1)
N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”,
The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
J. Tobin, “Liquidity Preference as Behavior Towards Risk”, The Review of Economic Studies 25, 2, 1958, pp. 65-86 (Module 1)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).

Part I: Introduction to data analysis and exploratory tecniques
- Data frames
- Cluster analysis
- Principal component analysis

Part 2: Normal linear regression and its generalizations
- Polynomial regression
- Multiple regression
- Logistic and multinomial regression
- Beta regression
- Poisson and negative binomial regression

Part 3: Panel data analysis
- Balanced and unbalanced panel, micro and macro panel
- Modeling the level of the dependent variable
- Modeling change of the dependent variable
- Fixed effects and random effects models for categorical variables and continuous variables

Chatterjee, S. and Hadi, A.S. (2012), Regression Analysis by Example, 5th Edition, Wiley. Chapters: 1, 2, 3 (excluding 3.9), 4 (excluding 4.3, 4.9.2, 4.9.3, 4.10, 4.12, 4.13, 4.14), 5 (excluding 5.6 and 5.7), 6 (excluding 6.6 and 6.7), 9, 11, 12 (excluding 12.8.3 and 12.8.4), 13 (excluding 13.5, 13.6, 13.7).

Fox,J. and Weisberg, S. (2010), An R companion to applied regression, 2nd Edition, SAGE publications
Inc.

Andreb, H-J, Golsch, K., Schmidt, A.W. (2013), Applied panel data analysis for economic and social
surveys, Springer. Chapters: 1, 2, 3, 4

Course Learning Objectives and Skill Acquisition
This course consists in two modules. The first deals with basic concepts in Energy Economics as the distribution of sources and consumption patterns at the geographical level, the analysis of demand and supply of different energy sources and the use of energy by sectors. World energy outlook scenarios are deeply investigated. The second part of the course allows students gathering main analytical tools to consider jointly energy issues and climate change impacts. The economic analysis of policy impacts over the long term and burden sharing issues in the international bargaining process are also analyzed. At the end of the course students will be able to understand global energy and climate reports, conduct their own impact analysis and be familiar with main simulation models.

Assessment
The course assessment will be based on two small dissertations that the students will write and present after the end of each part of the course, one on Energy Economics and one on Climate Policy issues, and on a final written exam formed by 5 open questions.

Course general schedule
Part I: Energy Economics
1. World Energy Outlook
2. Energy security and energy poverty
2. Fossil fuels economics
3. Energy price mechanisms
4. Alternative energy sources and clean energy technologies
Part II: Climate Change Policy
5. The science of climate change
6. Climate change impacts
7. Vulnerability and adaptation
8. Mitigation policies
7. The European low-carbon strategy

Detailed Teaching Agenda
Lecture #1: Introduction, practical information, data collection of participants
Part I: Energy Economics
Lecture #2: Introduction to the energy markets, composition of the energy mix
Lecture #3: Demand and supply, peculiarities of the energy markets
Lecture #4: How to read an energy balance: dimensions, sectors, sources
Lecture #5: Global energy markets and scenario building
Lecture #6: Energy price mechanisms: substitution elasticities
Lecture #7: Energy price mechanisms: the rebound effect
Lecture #8: Energy security and energy poverty
Lecture #9: Renewable sources: introduction and taxonomy
Lecture #10: Renewable sources: technological innovation and policy support
Lecture #11: The biofuels case: pros and cons of an eco-innovation
Lecture #12: Energy efficiency and policy support
Lecture #13: The EU Energy strategy: targets and policy instruments
Lecture #14: Dissertation on Energy Economics (Part I of the course, intermediate assessment)
Lecture #15: Dissertation on Energy Economics (Part I of the course, intermediate assessment)
Part II: Climate Change Policy
Lecture #16: The science of climate change
Lecture #17: Climate change impacts and economic damage
Lecture #18: Vulnerability and adaptation concepts
Lecture #19: The international institutional architecture for climate change
Lecture #20: Political bargaining at the international and level
Lecture #21: Mitigation actions and policy instruments
Lecture #22: The Emission Trading System and the EU experience
Lecture #23: The linkages between mitigation and economic performance
Lecture #24: Flexible mechanisms and developing countries
Lecture #25: The EU long-term low-carbon strategy
Lecture #26: Scenario building and policy impact evaluation
Lecture #27: The case of the EU long-term low-carbon strategy
Lecture #28: The case of the Green Climate Fund
Lecture #29: Dissertation on Climate Change Policy (Part II of the course, intermediate assessment)
Lecture #30: Dissertation on Climate Change Policy (Part II of the course, intermediate assessment)

Teaching material will be available to students in a dedicated Dropbox folder.
Textbooks (available in the corresponding folders for Lecture number)
Bhattacharyya S.C. (2011), Energy Economics: Concepts, Issues, Markets and Governance, UK: Springer-Verlag. Chapters: 1, 2, 3 (pp. 41-61), 4 (pp.77-81), 5 (sect. 5.1.1-5.1.5), 6 (excl. 6.5), 7 (Appendix excluded for all chapters).
IEA (International Energy Agency) (2017), World Energy Outlook 2017. Chapters: 1-2-3-4-5-6-7.
IEA (International Energy Agency) (2016), Energy Efficiency Indicators. (pages 5-10).
IPCC (2014), Climate Change 2014 – Synthesis Report. (pages 1-31).
IPCC (2014), Climate Change 2014 – Impacts, Adaptation and Vulnerability Part A. (pages 1-32).
IPCC (2014), Climate Change 2014 – Mitigation of Climate Change (pages 41-107).
Tol R.S.J. (2014), Climate Economics: Economic Analysis of Climate, Climate Change and Climate Policy, Edward Elgar Publ. Chapters: 1,2,3,4,5,6.

Course Learning Objectives and Skill Acquisition
This course consists in two modules. The first deals with basic concepts in Energy Economics as the distribution of sources and consumption patterns at the geographical level, the analysis of demand and supply of different energy sources and the use of energy by sectors. World energy outlook scenarios are deeply investigated. The second part of the course allows students gathering main analytical tools to consider jointly energy issues and climate change impacts. The economic analysis of policy impacts over the long term and burden sharing issues in the international bargaining process are also analyzed. At the end of the course students will be able to understand global energy and climate reports, conduct their own impact analysis and be familiar with main simulation models.

Assessment
The course assessment will be based on two small dissertations that the students will write and present after the end of each part of the course, one on Energy Economics and one on Climate Policy issues, and on a final written exam formed by 5 open questions.

Course general schedule
Part I: Energy Economics
1. World Energy Outlook
2. Energy security and energy poverty
2. Fossil fuels economics
3. Energy price mechanisms
4. Alternative energy sources and clean energy technologies
Part II: Climate Change Policy
5. The science of climate change
6. Climate change impacts
7. Vulnerability and adaptation
8. Mitigation policies
7. The European low-carbon strategy

Detailed Teaching Agenda
Lecture #1: Introduction, practical information, data collection of participants
Part I: Energy Economics
Lecture #2: Introduction to the energy markets, composition of the energy mix
Lecture #3: Demand and supply, peculiarities of the energy markets
Lecture #4: How to read an energy balance: dimensions, sectors, sources
Lecture #5: Global energy markets and scenario building
Lecture #6: Energy price mechanisms: substitution elasticities
Lecture #7: Energy price mechanisms: the rebound effect
Lecture #8: Energy security and energy poverty
Lecture #9: Renewable sources: introduction and taxonomy
Lecture #10: Renewable sources: technological innovation and policy support
Lecture #11: The biofuels case: pros and cons of an eco-innovation
Lecture #12: Energy efficiency and policy support
Lecture #13: The EU Energy strategy: targets and policy instruments
Lecture #14: Dissertation on Energy Economics (Part I of the course, intermediate assessment)
Lecture #15: Dissertation on Energy Economics (Part I of the course, intermediate assessment)
Part II: Climate Change Policy
Lecture #16: The science of climate change
Lecture #17: Climate change impacts and economic damage
Lecture #18: Vulnerability and adaptation concepts
Lecture #19: The international institutional architecture for climate change
Lecture #20: Political bargaining at the international and level
Lecture #21: Mitigation actions and policy instruments
Lecture #22: The Emission Trading System and the EU experience
Lecture #23: The linkages between mitigation and economic performance
Lecture #24: Flexible mechanisms and developing countries
Lecture #25: The EU long-term low-carbon strategy
Lecture #26: Scenario building and policy impact evaluation
Lecture #27: The case of the EU long-term low-carbon strategy
Lecture #28: The case of the Green Climate Fund
Lecture #29: Dissertation on Climate Change Policy (Part II of the course, intermediate assessment)
Lecture #30: Dissertation on Climate Change Policy (Part II of the course, intermediate assessment)

Teaching material will be available to students in a dedicated Dropbox folder.
Textbooks (available in the corresponding folders for Lecture number)
Bhattacharyya S.C. (2011), Energy Economics: Concepts, Issues, Markets and Governance, UK: Springer-Verlag. Chapters: 1, 2, 3 (pp. 41-61), 4 (pp.77-81), 5 (sect. 5.1.1-5.1.5), 6 (excl. 6.5), 7 (Appendix excluded for all chapters).
IEA (International Energy Agency) (2017), World Energy Outlook 2017. Chapters: 1-2-3-4-5-6-7.
IEA (International Energy Agency) (2016), Energy Efficiency Indicators. (pages 5-10).
IPCC (2014), Climate Change 2014 – Synthesis Report. (pages 1-31).
IPCC (2014), Climate Change 2014 – Impacts, Adaptation and Vulnerability Part A. (pages 1-32).
IPCC (2014), Climate Change 2014 – Mitigation of Climate Change (pages 41-107).
Tol R.S.J. (2014), Climate Economics: Economic Analysis of Climate, Climate Change and Climate Policy, Edward Elgar Publ. Chapters: 1,2,3,4,5,6.

Riepilogo funzioni reali di una variabile reale. Proprietà e definizioni principali, funzioni elementari, derivate e regole di derivazione. Derivate successive, derivata di funzione composta, derivata e monotonia, derivata seconda e convessità, CNeS per l’esistenza di massimi e minimi locali. Max e min globali. T. di Weierstrass.
Topologia di . Successioni di R. Lo spazio metrico . Successioni di . Topologia di : insiemi aperti. Insiemi chiusi. Insiemi compatti.
Funzioni di più variabili reali. Definizione ed esempi. Curve di livello. Funzioni lineari e forme quadratiche. Funzioni continue e teorema di Weierstrass (c.d.).
Calcolo differenziale per funzioni a più variabili. Derivate parziali. Differenziale e piano tangente. Gradiente e matrice Jacobiana. Approssimazioni mediante differenziali. Derivata lungo una curva. Derivata direzionale. Derivata di funzione composta. Derivate di ordine superiore e matrice Hessiana.
Teorema della funzione implicita: Caso di una funzione in due variabili. Interpretazione geometrica. Caso di una funzione in più variabili. Caso lineare: m equazioni, n+m incognite. Caso generale dei sistemi di m equazioni ed n+m incognite. Teorema della funzione inversa.
Ottimizzazione statica. Ottimizzazione libera. CN per l’esistenza di massimi e minimi locali (c.d.). Punti stazionari. Forme quadratiche definite e semidefinite. Criterio per 2 o 3 variabili. CS del secondo ordine per l’esistenza di massimi e minimi liberi locali. Ottimizzazione vincolata. Vincoli bilaterali. CN per l’esistenza di massimi e minimi locali. Vincoli unilaterali: CN per l’esistenza di massimi e minimi locali. Condizioni di Kuhn-Tucker per variabili non negative. Interpretazione del moltiplicatore di Lagrange (c.d.).
Funzioni omogenee. Definizione e proprietà geometriche. Teorema di Eulero. Funzioni omotetiche
Funzioni concave e convesse. Definizioni e proprietà geometriche. Proprietà e caratterizzazione. Concavità e segno della matrice Hessiana. Funzioni quasi concave e quasi convesse. Funzioni di Cobb-Douglas. Funzioni pseudoconcave Ottimizzazione libera e vincolata in ipotesi di quasi convessità e quasi concavità.
Modelli dinamici: Modello di Malthus a tempo discreto e continuo. Modelli dinamici a tempo continuo e discreto. Definizione di equazione differenziale e alle differenze. Equazioni alle differenze di passo uno: esistenza e unicità delle soluzioni.
Calcolo delle variazioni. Problema di calcolo delle variazioni. Equazione di Eulero in forma integrale (c.d.). Equazione di Eulero-Lagrange. Condizioni di trasversalità. Condizioni sufficienti in ipotesi di concavità o convessità.
Introduzione alla teoria del controllo ottimo. Problema di controllo ottimo (tempo discreto e continuo). Principio di massimo di Pontryagin. Condizioni sufficienti in ipotesi di concavità.
Programmazione dinamica. Orizzonte finito e tempo discreto: Principio di ottimalità di Bellman. Principio della programmazione dinamica. Equazione di Bellman e condizioni di ottimalità.
(c.d.) = ”con dimostrazione”

Libri di testo:
• Simon & Blume “Matematica per le scienze economiche” ed Egea.
• Salsa & Squellati “Modelli dinamici e controllo ottimo” ed. Egea.

1. Savings-investment equilibrium and aggregate product level in neoclassical theory and in the aggregate demand approach of Keynesian origin
2. The investment function elastic to the interest rate as a derivation of the function of demand for capital; applicability to the investment function of the criticism of the neoclassical theory of capital. Attempts to identify alternative analytical bases for the relationship interest rate-investments.
3. Savings, investment and productive capacity: long-run relationships in an alternative theoretical approach
4. Aggregate demand, overall output and savings formation: implications for economic policies, with particular regard to public debt

- G. Ackley, Macroecnomic theory and policy, Macmillan, 1978, pp. 170-3, pp. 254-6, pp. 622-5
- J. Robinson, Introduction to the Theory of Employment, Palgrave Macmillan 1969, pp. 6-11, 15-29
- P. Garegnani, "Notes on consumption, investment and effective demand", part I, Cambridge Journal of Economics, 1978, sects. 6 and 7, pp. 348-53
- F. Petri, General Equilibrium, Capital and Macroeconomics, Edward Elgar, 2004, pp. 267-69
- M. Kalecki, "The principle of increasing risk", Economica, 1937, pp. 440-6- R. Ciccone, “Accumulation and capacity utilization: some critical considerations on Joan Robinson’s theory of distribution”, in Political Economy,
n. 1, 1986 (available online at http://www.centrosraffa.org ,
entry ‘From the archives’), pp. 26-29
- P. Garegnani, “Some Notes for an Analysis of Accumulation”, in E.J Nell, D. Laibman, J. Halevi (eds), Beyond the Steady State, Macmillan, 1992, pp. 50-53
- R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory, Palgrave Macmillan, 2013, Vol. 2,
paras. 1.1-1.5, pp. 15-33 and footnotes pp. 38-43
- Materials distributed by the teacher

Some hints of statistical inference and linear algebra
The multiple linear regression model. Interpretation and comparison of regression models. Least squares and maximum likelihood estimators. Heteroschedasticity and autocorrelation, multicollinearity, non-deterministic exogenous variables and instrumental variables method, incorrect model specification, stability of the regression function and use of dichotomous variables.
Panel data models: fixed effect models and random effect models. Within and between estimators. Heteroschedasticity and autocorrelation tests. Dynamic models for panel data: Arellano-Bond estimator.
Models with lagged variables: dynamic regression models, distributed lag models.
Introduction to time series analysis: stochastic processes, stationarity and autocovariance function, moving average and integrated autoregressive processes (AR, MA, ARMA, ARIMA), the Box and Jenkins procedure.

Students can refer to the following texts (the first three can be considered alternative to each other)
1) Introduzione all'Econometria, J. H. Stock, M. W. Watson, Ed. Pearson
2) Econometrica, J. Johnston, Ed. Franco Angeli
3) Econometria, M. Verbeek, Ed. Zanichelli
4) Lectures on advanced econometrics, L. Pieraccini, Ed. Aracne
5) Introduction to Time Series Analysis and Forecasting, D. C. Montgomery, C. L. Jennings, M. Kulahci, Ed. Wiley

Some of the topics discussed in the course can also be found in
Introductory Econometrics for Finance, C. Brooks, Cambridge University Press

For background references to statistical inference and linear algebra students can refer:
Fondamenti di Inferenza Statistica, L. Pieraccini, Ed. Giappichelli
Matrix Differential Calculus in Statistics and Econometrics, J. R. Magnus, H. Neudecker, Ed. Wiley Series in Probability and Statistics

For applications with R, students can refer to one of the following texts
Introductory Statistics with R, P. Dalgaard, Ed. Springer
An Introduction to Applied Multivariate Analysis with R, B. Everitt, T. Hothorn, Ed. Springer

lntroduction to modern growth theory: part I, exogenous growth (20 hours); part II, endogenous growth (12 h). Models of overlapping generations of agents (OLG) (10 h). Foundation of the neoclassical theory of consumption, saving and investments (10 h). Additional topics (8 h).

Reference book: Daron Acemoglu, "Introduction to Modern Economic Growth", Princeton University Press, 2009.
Class notes are published on the course website.