A. Alternative approaches to the theory of value and distribution
Classical analysis: the notion of surplus - social forces determining the real wage
neoclassical analysis: the role of factor substitution
Euler's theorem. Reswitching and reverse capital deepening

B. theories of employment in the two approaches
Keynes and effective demand: compatibility and incompatibility
the neoclassical synthesis
The present state of mainstream economics. The imperfectionist argument

C. Empirical analysis
mainstream empirics of growth: the theoretical bases (Solow 1957)
growth accounting
The production function: the problem of aggregation.
The accounting identity and the dual problem
labour productivity: an alternative analysis
the wage-productivity nexus in the Classical-Keynesian approach
public debt in a classical-Keynesian perspective: the redefinition of sustainability

All material is provided to students on the moodle website

1. The notion of Surplus
2. The capitalist mode of production
3. Sraffa's theory of prices
4. The integrated wage-commodity sector and the surplus equation
5. The marginalist theory of distribution
6. Capital as a factor of production

- Teaching material written by the teacher and available online.
- Sraffa, P. (1960) Production of Commodities by Means of Commodities. Cambridge University Press: Cambridge. Chapters I-IV and VI.

Second Module -Program
1. The different adjustment process between savings and investment in neoclassical theory and in the Keynesian approach, with the associated implications for the level of aggregate output.
2. The neoclassical theory of investment: derivation of the interest-elastic investment demand function from the demand function for capital as a factor of production. Extensibility to the investment function of the criticism of the neoclassical theory of capital.
3. Critical analysis of attempts to establish the inverse interest-investment relationship on non-neoclassical theoretical bases.
4. Long-run relationships between investment, savings and productive capacity in the context of a theoretical approach alternative to the neoclassical one. Demand, capacity utilisation levels and processes of capacity creation.
5. Private savings and public sector deficits and debt. A theoretical model of the effects of fiscal policy on the ratio of public debt to GDP.

Second Module - Teaching material
- Slides of the lectures.
Parts from the following materials will also be indicated during the course:
- G. Ackley, Macroeconomic theory and policy, Macmillan, 1978.
- J. Robinson, Introduction to the Theory of Employment, Palgrave Macmillan, 1969.
- P. Garegnani, ‘Notes on consumption, investment and effective demand’, Cambridge Journal of Economics, 2:4, 1978.
- F. Petri, General Equilibrium, Capital, and Macroeconomics, Edward Elgar, 2004
- M. Kalecki, ‘The Principle of Increasing Risk’, Economica, 4:16, 1937.
- R. Ciccone, "Accumulation and capacity utilization: some critical considerations on Joan Robinson’s theory of distribution", Political Economy, 2:1, 1986.
- P. Garegnani, ‘Some notes for an analysis of accumulation’, in J. Halevi, D. Laibman and E. Nell (eds.), Beyond the steady state. A revival of growth theory, Macmillan, 1992.
- R. Ciccone, ‘Public debt and aggregate demand. Some unconventional analytics’, in E. S. Levrero, A. Palumbo and A. Stirati, Sraffa and the Reconstruction of Economic Theory, Palgrave Macmillan, 2013.

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).

1. The notion of Surplus
2. The capitalist mode of production
3. Sraffa's theory of prices
4. The integrated wage-commodity sector and the surplus equation
5. The marginalist theory of distribution
6. Capital as a factor of production

- Teaching material written by the teacher and available online.
- Sraffa, P. (1960) Production of Commodities by Means of Commodities. Cambridge University Press: Cambridge. Chapters I-IV and VI.

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) 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

C) How to measure the cost of capital
1. CAPM
2. impact of indebtedness
3. extension of CAPM in imperfect markets and how to empirically test CAPM
3. beyond CAPM: multi-factor models

D) Ownership models and corporate governance systems
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., 2018, Finanza aziendale 1, IV edizione, Pearson, capp.17 (incluse le Appendici), 18 e §§ 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, Pearson, capp. 1-2 (solo §§ 2.1, 2.3, 2.5, 2.6, 2.7)-3-4-6-7-10-13-14 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.

A. Alternative approaches to the theory of value and distribution
Classical analysis: the notion of surplus - social forces determining the real wage
neoclassical analysis: the role of factor substitution
Euler's theorem. Reswitching and reverse capital deepening

B. theories of employment in the two approaches
Keynes and effective demand: compatibility and incompatibility
the neoclassical synthesis
The present state of mainstream economics. The imperfectionist argument

C. Empirical analysis
mainstream empirics of growth: the theoretical bases (Solow 1957)
growth accounting
The production function: the problem of aggregation.
The accounting identity and the dual problem
labour productivity: an alternative analysis
the wage-productivity nexus in the Classical-Keynesian approach
public debt in a classical-Keynesian perspective: the redefinition of sustainability

all material (consisting of scientific articles) is discussed in the classroom and made available on the moodle site

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.

Industrial development and innovation are the essential forces that determine growth, development and structural change. In particular, innovation plays an essential role in the developing world and its role will be increasingly important. This course will give students the tools and analytical methods to think systematically about industrial development and innovation in developing countries, and provide them with a practical understanding of these phenomena.

Part one of the course lays the theoretical foundations of industrial development, including traditional, as well as, new and unorthodox approaches, with a focus on the theory of the firm and of innovation in emerging countries.
Part two of the course explores in detail the tools and mechanisms frequently implemented in industrial and innovation policies and programs, and analyzes the approaches followed by some governments and international organizations using concrete empirical examples from policies and projects implemented.

COMPULSORY READINGS
Selected Chapters from:
Szirmai A. (2015) Socio-Economic Development: Cambridge University Press, 2nd Ed.., chapters 8 and 9.
Crespi G., Fernandez-Arias E. and Stein E. (Eds.), 2014, Rethinking Productive Development: Sound Policies and Institutions for Productive Transformation, Development in the Americas, London: Palgrave for Inter-American Development Bank. Chapters 1, 2 and 3.
Cirera X. and Maloney W.F., 2017, The Innovation Paradox: Developing Country Capabilities and the Unrealized Promise of Technological Catch-Up, Washington DC: The World Bank, https://openknowledge.worldbank.org/handle/10986/28341 chapters 1, 2, and 4.
Articles:
1. Bell M.R. and Pavitt K., 1993, ‘Technological Accumulation and Industrial Growth: Contrasts between Developed and Developing Countries’, Industrial and Corporate Change, Vol.2 No.2.
2. Casaburi G., Maffioli A., Pietrobelli C., 2014, Policies to Promote Coordination among Interlinked Firms, in Crespi et al., Rethinking Industrial Policy: Sound Policies and Institutions for Productive Transformation, Palgrave, chapter 7.
3. Fagerberg J., 2006, “Innovation. A Guide to the Literature”, in J.Fagerberg and D.Mowery (Eds.) The Oxford Handbook of Innovation, Oxford: Oxford University Press.
4. Gereffi G., Humphrey J., Sturgeon T., 2005, “The governance of global value chains”, Review of International Political Economy, 12:1, 78-104.
5. Giuliani E., Pietrobelli C. and Rabellotti R. (2005) “Upgrading in Global Value Chains: Lessons from Latin American Clusters”, World Development, Vol.33(4), pp. 549–73.
6. Hallward-Driemeier, M. and Pritchett L., 2015. "How Business Is Done in the Developing World: Deals versus Rules." Journal of Economic Perspectives, 29(3): 121-40. https://www.aeaweb.org/articles.php?doi=10.1257/jep.29.3.121
7. Hausmann R. and Rodrik D. (2006) “Doomed to Choose: Industrial Policy as a Predicament”, Harvard Kennedy School Working Paper. http://www.hks.harvard.edu/index.php/content/download/69495/1250790/version/1/file/hausmann_doomed_0609.pdf
8. Hausmann R. and Rodrik D., (2003), “Economic Development as Self Discovery,” Journal of Development Economics, Vol.72, Issue 2, pages 603-33, December (also NBER Working Paper No. 8952).
9. Lall S. and Pietrobelli C., 2005, “National Technology Systems in Sub-Saharan Africa”, International Journal of Technology and Globalization, KSG, Harvard, Vol.1 No.3-4, 2005.
10. Lall S., 1992, "Technological Capabilities and Industrialization", World Development, Vol.20 No.2
11. Lin J. and Chang H.J., 2009, “Should Industrial Policy in Developing Countries Conform to Comparative Advantage or Defy it? A Debate Between Justin Lin and Ha-Joon Chang”, Development Policy Review, 2009, 27 (5): 483-502
12. Lundvall B‐Å. (2007) “National Innovation Systems—Analytical Concept and Development Tool”, Industry and Innovation, 14:1, 95-119, DOI: 10.1080/13662710601130863
13. Maffioli A., Pietrobelli C. and Stucchi R., 2016, The Impact Evaluation of Cluster Development Programs, Washington D.C.: Inter-American Development Bank, http://dx.doi.org/10.18235/0000335 Chapter 1.
14. McMillan, M., Rodrik, D., Verduzco-Gallo, I., 2014, “Globalization, Structural Change, and Productivity Growth, with an Update on Africa”. World Development 63: 11-32, doi: 10.1016/j.worlddev.2013.10.012
15. Nelson R.R., 2008, “Economic Development from the Perspective of Evolutionary Theory”, Oxford Development Studies Vo.36 No.1 March, pp.9-22
16. Pietrobelli C., 1997, ‘On the Theory of Technological Capabilities and Developing Countries’ Dynamic Comparative Advantage in Manufactures’, Rivista Internazionale di Scienze Economiche e Commerciali, Vol.XLIV, No. 2, June.
17. Pietrobelli, C. & Staritz, C., 2017, “Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions”, European Journal of Development Research, https://doi.org/10.1057/s41287-017-0112-5
18. Rodrik D., 2013, “Unconditional Convergence in Manufacturing”, Quarterly Journal of Economics, pp.165-204, doi:10.1093/qje/qjs047

OPTIONAL SUPPLEMENTARY READINGS
 Chatterji A., Glaeser E.L., Kerr W.K., 2013, “Clusters of Entrepreneurship and Innovation”, NBER Working Paper 19013 http://www.nber.org/papers/w19013
 EIU, “Innovation Clusters: Understanding life cycles”, The Economist Intelligence Unit, London http://destinationinnovation.economist.com/category/cluster-effects/
 Fernández-Arias E., Sabel C., Stein E., Trejos A., 2017, “Two to Tango: Public-Private Collaboration for Productive Development Policies”, IDB Working Paper IDB-WP-855, Washington D.C.: The Inter-American Development Bank. https://publications.iadb.org/handle/11319/8697
 Fu X., Pietrobelli C., Soete L., 2011, “The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up”, World Development Vol. 39, No. 7, pp. 1204–1212
 Humphrey J. and Schmitz H. (2002) “How does insertion in global value chains affect upgrading industrial clusters?”, Regional Studies, Vol. 36, No.9.
 Podcast on Structural Change, Interview to Dani Rodrik, IMF Podcast, http://www.imf.org/external/pubs/ft/survey/so/2013/INT062813A.htm
 Schmitz H. and Nadvi K., (1999). "Clustering and Industrialization: Introduction”, World Development, Vol. 27, No.9., pp. 1503-14.
 Szirmai A., 2011, “Manufacturing and Economic Development”, UNU-WIDER Working Paper No. 2011/75, November, https://www.wider.unu.edu/publication/manufacturing-and-economic-development

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

1. The notion of Surplus
2. The capitalist mode of production
3. Sraffa's theory of prices
4. The integrated wage-commodity sector and the surplus equation
5. The marginalist theory of distribution
6. Capital as a factor of production

- Teaching material written by the teacher and available online.
- Sraffa, P. (1960) Production of Commodities by Means of Commodities. Cambridge University Press: Cambridge. Chapters I-IV and VI.

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.

Over the past decades the importance of cities and regions has increased in parallel with
the ‘globalisation’ of the world economy. The expansion of trade, the internationalization
of firms, the galloping process of outsourcing, and the emergence of digital technologies
are not creating a 'flat world’. Numerous forces are coalescing in order to provoke the
emergence of urban 'mountains' where wealth, economic activity, and innovative capacity
agglomerate.
Not all regions have the same capacity to maximize the benefits and opportunities and
minimize the risks linked to globalization. Not all regions will experience successful
recovery and resilience trajectories.
The course aims to provide students with an in-depth understanding of key conceptual
tools for the analysis of local economic development and policies. Lectures, seminal
focuses and practical classes will drive students in analyzing why and how local
trajectories of development can be so different and how to ensure that they are virtuous.

Conceptualization of regional growth and local development
Neo-classical approach and the regional convergence debate
Local economic development: institutions, innovation, proximities, competitiveness
Regional Policies: motivation, implementation, and impacts
Empirical analysis of regional economics and policies: data and measurement, growthdeterminants
modelling, introduction to policy evaluation approaches

Capello R., Regional Economics, Routledge 2nd Edition, 2016.
European Commission, 8th Cohesion Report, 2022

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. Orizzonte infinito.
(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.

Part 1: Consumer and production theory
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.

Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.

Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.

Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.

Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.

A. Mas-Colell, M.D. Whinston and J.R. Green, Microeconomic Theory, Oxford University Press, 1995
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.

Part 1: Consumer and production theory
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.

Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.

Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.

Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.

Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.

A. Mas-Colell, M.D. Whinston and J.R. Green, Microeconomic Theory, Oxford University Press, 1995
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.

Part I: The first part of the course deal with the basic concepts needed to define and measure
economic growth and the business cycle. To derive a set of short and long-term stylised facts,
we will review essential notions about the trend-cycle decomposition of historical series, the
filtering procedures and the theory of stochastic processes.
Then, we will derive the neoclassical growth model (Solow model) and its micro-founded
version with complete and perfectly competitive markets and perfect information (RamseyCass Koopmans).
We will see that, in the long run, the trend component of the technological progress causes
the growth of the real variables, whereas, in the short run, random components in the
technological progress will trigger the cycle.

Part II: This second part of the course will focus on several extensions of the canonical RBC
model. We will keep adding more and more elements to the model to bring the results of
simulations closer to empirical evidence. The main extensions that we will see are the
indivisible labour model, habit in consumption, variable capital utilization, capital and
investment adjustment cost and preference shocks.

Part III: The third part of the course will focus on fiscal policy in the RBC models. In particular,
on the effects of increases in public spending financed by either lump-sum or distortionary
taxation and debt accumulation, emphasizing the theoretical foundations and the match with
the empirical evidence.

Part IV: The last part will focus on monetary policy issues. We will see that the introduction
of money in a Walrasian model implies results that are at odds with the empirical evidence.
Then we will focus on the New-Keynesian approach, which shares the same methodological
approach as the RBC theory. Still, the micro-foundation is based on monopolistic competitive
markets and sticky prices. These two hypotheses make money non-neutral and give the
monetary policy an active role. Furthermore, price stickiness also affects the responses to
real shocks that differ, to some extent, from those obtained in the RBC model. In this way, we
will see how it is possible to reproduce both the unconditional and the conditional evidence
to the realization of both real and nominal shocks.

Teaching material:
There is no single assigned textbook for the course. Instead, class lectures and handouts, drawn on my typed notes, will be available online.
The teaching material is based on the following textbooks and scientific papers:
Textbooks
Gali, Jordi. Monetary Policy, Inflation, and the Business Cycle.
Romer, David. Advanced Macroeconomics
Walsh, Carl. Monetary Theory and Policy.
Marchetti, Enrico. Teorie del Ciclo Economico