Business Economics and Public Policy

1. Business Economics and Public Policy 2010-11 AY Electives

2. BE 527: Energy Markets and Energy Politics (3.0 cr hrs) • For students interested in sustainability and energy markets • When: Fall 10 • Who: Prof. Thomas Lyon • Topics: • What are the environmental and social impacts of energy sources and use? • What institutions govern energy use? • How do energy markets (including spot and future markets) work? • How and why do energy markets fail? • What is the role of government in energy markets? What tools do governments use?

3. BE 562: Growth and Stabilization in the Macro Economy (2.25 cr hrs) • For students interested in finance and consulting • When: Fall B 10, Winter A 11 • Who: Prof. Levenstein • Topics: • What is a recession?  Are we in one now?  What causes recessions and what can we do to prevent them? • What is the impact of instability in financial markets, like the current mortgage crisis, on economic growth? • Why is the value of the dollar falling?  Is it likely to continue? What is the likely impact on the US economy?  On the global economy? • What is the likely impact of rapid growth in China and India on the US economy? • How do I interpret announcements about economic growth, the trade deficit, etc.

4. BE 570: Tax Policy and Business (3.0 cr hrs) • For students interested in accounting, financial services industries, and policy • When: Winter 11 • Who: Prof. Joel Slemrod • Topics: • What key principles should govern the choice of tax policy? • What, if anything, can economic reasoning say about what tax system is fairest? • What is the likely impact of tax hikes for wealthy Americans on economic growth, investment, and saving? • How does the corporate income tax affect the volume of corporate investment and corporate financial structure? • Should the U.S. income tax be replaced with a consumption tax? • What are the key arguments for increasing the federal gas tax by a dollar a gallon, and how sound are they?

5. BE 580: Competitive Tactics and Game Theory (3.0 cr hrs) [or BE 581: Competitive Tactics and Policy] • For students interested in consulting • When: Winter 11 • Who: Prof. Valerie Suslow • Topics: • How can firms develop and maintain profits in the face of competition? • How do governments use antitrust and competition laws to set limits on the degree to which firms exercise market power? • What lessons does game theory hold for business strategy? • How can industry leaders defend their competitive positions without attracting unwanted attention from competition authorities?

6. New Course: BE 608: Health Care Markets and Public Policies (3 cr hrs) • For students interested in health care and related industries (incl. insurance) • When: Fall 10 • Who: Prof. Tom Buchmueller • Topics: • How is the U.S. health care systemorganized? How do regulations and other policies affect private markets? • Why do 90% of Americans with private insurance receive coverage through the workplace? What are the pros and cons of employer-sponsored insurance? • What is the effect of insurance on patient and provider behavior? • How will alternative approaches to health care reform affect key stakeholders—patients, insurers, providers, drug and device manufacturers? • How is health care financed and delivered in other countries? What lessons can be learned from abroad?

7. BE 619: Incentives and Productivity (2.25 cr hrs) • For students interested in human resource management and consulting • When: Fall B 10 • Who: Prof. Mario Macis • Topics: • How should pay and promotions be structured across jobs to induce best effort from employees? • Should incentive systems include elements of subjective evaluation? • Why do firms use teams and how are teams used most effectively? • Should firms pay for their employees' MBAs? Should they offer on-the-job training? • Why are CEOs so highly paid and why does their pay take the form that it does? • How can cross-country differences in pay patterns be explained?