Welcome: The Business and Public Policy Department

BPUB 770: Political Economy of the Public Sector (Cross-listed with BPUB-201)

This course explores the role of government in the economy. We will first consider the economic rationale for government intervention in the economy-in what situations is government intervention in private markets warranted? We will then analyze the successes, failures, and compromises inherent in government interventions in a variety of areas, such: the environment, legalizing marijuana, research and development, piracy and intellectual property, merger policy, financial disclosure, banking, airlines, media, social security, terrorism, bankruptcy, education, health care, labor unions, employment regulation, and tax policy.

BPUB 772: Urban Public Policy and Private Economic Development (Also listed as BPUB 206 / REAL 206 / REAL 772 / REAL 972)

Prerequisites: Microeconomics

This course considers the pervasive interactions between real estate developers and government. Governments influence real estate development in many ways: through zoning laws, taxes, public expenditures, impact fees, infrastructure, building codes, environmental regulations, to name just a few. Private real estate developers are the prime movers in determining urban development patterns. Thus, we will consider how private development is influenced by, and influences, government regulation, the government policies listed above and how governments influence and respond to private activity.

As a "case study" of this interaction between government and real estate developers and markets, we will consider one of the major policy interventions currently being advocated, adopted, and considered by governments throughout the country - growth controls or smart growth to deal with the alleged problem of urban sprawl. To this end, we will consider what is meant by urban sprawl, why it is considered a problem - by whom - why growth controls are considered a solution to the problem, the possible effects of growth controls on various groups, the views of developers about both urban sprawl and growth controls. Several guest lecturers from the private, not-for-profit, and public sectors are scheduled to make presentations.

Course Syllabus

Professor Janet Pack Section 401: MW 10:30-12 PM

The purpose of this course is to examine the financing of governments in the urban economy. Topics to be covered include the causes and consequences of the urban fiscal crisis, the design of optimal tax and spending policies for local governments, funding of public infrastructures and the workings of the municipal bond market, privatization of government services, and public financial systems for emerging economies. Applications include analyses of recent fiscal crises, local services and taxes as important determinants of real estate prices, the infrastructure crisis, financing and the provision of public education, and fiscal constitutions for new democracies using South Africa as an example.

Prerequisites: MGEC 621 (intermediate microeconomics) or equivalent. It is expected that the student has been introduced to some basic game theory. There will be a quick review of the basics and some recommended supplemental readings for those who have little or no background in game theory.

The purpose of this mini-course is to develop students' abilities to apply game theory to decision-making. Development of the tools of game theory and the application of those tools is emphasized. Game theory has become an important tool for managers and consultants in analyzing and implementing tactical as well as strategic actions. This course will primarily focus on examples useful for developing competitive strategy in the private sector (pricing and product strategy, capacity choices, contracting and negotiating, signaling and bluffing, takeover strategy, etc.). Game theory can also be used to address problems relevant to a firm's organizational strategy (e.g., internal incentives and information flow within a firm) and to a firm's non-market environment (e.g., strategic trade policies, litigation, and regulation strategy).

The course addresses the interaction of economic and political policy and the lessons to be derived for businesses and international organizations. The course will examine the political factors underlying economic policy in emerging market economies including policies toward banking crises, privatization of state owned enterprises, macroeconomic problems, reform of the international trade system, and corruption. The role of international agencies such as the World Bank and the International Monetary Fund will be analyzed. Intensive attention will be given to government and international responses to the recent financial crises in Asia and Latin America and the problems encountered in Eastern Europe including Russia as well as China.

BPUB 798: Privatization: An International Perspective (Also listed as BPUB 298/MGMT 798)

Privatization is sweeping the globe. The redefinition of boundaries between the public and private sectors creates new and exciting opportunities for businesses and policy makers. This course will review the international experience with privatization -- the Thatcher privatizations of the 1980s, the current sale of electric utilities, airlines, and telecommunication companies in emerging and developed economies. We will also analyze the ongoing transformation of post Communist countries. Students will learn how to value state-owned assets using real option value techniques. We will discuss bidding strategies in privatization auctions. The last part of the course offers an introduction to project finance as a new form of cooperation between the public and private sectors.