Objective

This course will present a foundation in microeconomics and the application of microeconomic analysis to common public policy issues in city and regional planning, including environmental quality, housing, and transportation. It will also provide a useful foundation for public finance.

Required Texts

Anne C. Steinemann, William C. Apgar, and H. James Brown. 2003. Microeconomics for Public Decisions, Mason OH: Thomson South-Western.

Arthur M. Okun. 1975. Equality and Efficiency, The Big Tradeoff. Washington, D.C.: The Brookings Institution.

Additional readings are required for several classes, as indicated in the course plan.

These articles are available by course or course instructor at the Georgia Tech Library Homepage: www.library.gatech.edu.

Policies

First, you must come to class.  There are only 15 classes, so each class is important. If you must miss a class, arrange to get lecture notes and handouts from other students. Participation in class means having read assigned materials and come to class prepared for disc us sion questions and delivery of completed assignments on time. Late assignments will be penalized one letter grade per week. DO NOT submit written assignments via email.

The class will be sub-divided into 8 teams of approximately five students each.  The students in each group will prepare a single research paper and make a group presentation during class.  Research papers are a minimum of 25 and a maximum of 30 pages, single spaced, using 12 pt. Arial font, 1" margins.  A list of suggested topics from which to choose will be distributed on the first day of class. S tudents will have two weeks to select a topic and present a 2 page written research proposal to the Instructor.  The proposal will describe the group's approach to the topic and the manner in which the group has equitably distributed the work among the members.  On the day that the group's research papers are due the group will make a 45-minute oral presentation (with full group presentation) of their topic to the class on the date listed in the syllabus.

Basis for Grading

Team research report and presentation 35%

Class participation 10%

Mid-term 20%

Final 35%

Course Plan

Week 1 -  Overview of Course. Introduction of Instructor and students.

Lecture and discussion: Overview of Economics

Reading: Steinemann, et. al., Chapter 1.

Robert Haveman, "Market Failure and the Need for Collective Action", in The Economics of the Public Sector, Wiley and Sons, 1970, pp. 31-46.

Mandeleker and Cunningham, "Government Intervention in Land-Use Markets", from Planning and Control of Land Development, Cases and Materials. Charlottesville, VA : The Michie Company. 1985 (pp. 1-11).

Distribute topics for group research paper.

Week 2 -  Demand and Supply.

Lecture and discussion: Steinemann, et. al., Chapter 2.

Morris, Robert L., "Traffic as a Function of Supply and Demand". in Traffic Quarterly. Washington, DC: Eno Foundation.[Missing Date]. pp. 591-603.

G. Kraft, "Free Transit Revisited," Public Policy. Winter, 1973. pp. 79-87.

All research paper topics requests are due.

Week 3 -  Choice and Demand.

Lecture and discussion: Steinemann, et. al., Chapter 4.

Tiebout, Charles. "A Pure Theory of Local Expenditures," The Journal of Political Economy, Vol. 64, No. 5 (Oct. 1956), pp. 416-424.

Peterson, George, "Voter Demand for Public School Expenditures," in John Jackson, ed., Public Needs and Private Behavior in Metro Areas. Cambridge, MA: Ballinger. 1975, pp. 99-119.

Week 4 -  Costs and Supply.

Lecture and discussion: Steinemann, et. al., Chapter 5.

Watson, Peter L., and Edward P. Holland, "Congestion Pricing- The Example of Singapore". The World Bank. Paper presented to the Conference on Transportation Pricing Alternatives, Easton, MD, March 14-17, 1976.

Stanford, Duane D., "Toll Lanes Urged to Ease Gridlock," from The Atlanta Journal-Constitution, Nov. 30, 2004.

Stanford, Duane D., "Officials: 316 Toll Should Expire" from The Atlanta Journal-Constitution, Dec. 18, 2004.

"Toll Road Proposal Needs Some Work Before DOT Meeting", from Athens Banner-Herald. Dec. 20, 2004. Athens, GA: Online Athens.

"What Does Congestion Cost Us?", Lincoln Institute for Land Policy. Cambridge MA. 2004.

"Performance Measure Summary for Atlanta ". Lincoln Institute for Land Policy, Cambridge, MA. 2004.

Guest speaker: Doug Hooker, Director, State of Georgia Bridge and Toll Authority

Week 5 -  Market Dynamics and Interventions.

Lecture and discussion: Steinemann, et. al., Chapter 3.

Quinn, Christopher, "Houses a Mixed Public Blessing", from The Atlanta Journal-Constitution, Nov. 29, 2004, p. F4.

Real Estate Research Corporation, "The Dynamics of Neighborhood Change" Pamphlet. U.S. Washington, D.C. : Department of Housing and Urban Development. 1973.

Henry Pollakowski, "Who Benefits from Rent Control?" from Consumers Research, April 2003 (pp. 18-20).

"The Great Manhattan Rip-Off: Housing in New York City ", from The Economist. June 7, 2003.

Surowiecki, James, "The Financial Page: Fare Games" in The New Yorker , March 18, 2002 .

Phalon, Richard, "License to Mint Money", from Forbes Magazine, June 20, 1994 .

Guest speaker: Dr. Larry Keating

Week 6 -  Efficiency and Equality (Class 1).

Lecture and disc us sion: Steinemann, et. al. Chapter 6.;

Okun, Ch. 1-4.

Moni Basu, "Bhopal: Tragedy's Toll Grows After Twenty Years", from The Atlanta Journal-Constitution, Nov. 28, 2004.

McMahon, George F., et. al., "Lake Lanier National Economic Development Update: Evaluation of Water Supply, Hydropower, and Recreation Benefits, Final Report." Feb. 2004. Atlanta, GA: Atlanta Regional Commission. (Library Reserve).

McMahon, G.F. and Farmer, M.C. (2004) Reallocation of federal multipurpose reservoirs: principles, policy and practice. J. Water Resources Planning and Management, ASCE 130(3), 187-197. 

Guest Speaker: Dr. George F. McMahon, National Practice Director for Water Resources, ARCADIS.

Week 7 -  Efficiency and Equity. (Class 2)

Guest Speaker: Jim Kundell, Ph.D. University of Georgia Carl Vinson Institute.

Class presentation: Group #1

Week 8 -  Welfare Economics.

Lecture and discussion: Steinemann, et. al., Chapter 7.

"The Economics of Driving Your Car: Direct Costs, Hidden Costs and Subsidies". The Florida Department of Community Affairs and 1000 Friends of Florida. Tallahassee, FL. 1996.

Altshuler, Alan A. "Transit Subsidies: By Whom, For Whom?" from Journal of the American Institute of Planners , Vol. 35 (March, 1969) Washington, D.C.: American Institute of Planners. pp. 84-87.

T.A. Laws and Brenton Fiedler, "Calculating the True Cost of Private School Education: Based on a Survey of South Australian School Fees". Australian Journal of Social Issues. Nov. 2002. Australian Council of Social Service.

Mid-Term Exam

Week 9 -  Monopoly.

Lecture and discussion: Steinemann, et. al., Chapter 8.

Mansfield, Edwin S. Microeconomics. 1975. N.Y.: W.W. Norton, Inc. "The New York Water Crisis," pp. 66-72.

Jack Hirschleifer, James C. DeHaven, and J.W. Milliman, "New York 's Water Crisis: Case Study of a Crucial Decision," in Water Supply: Economics, Technology, and Policy (Chicago, Ill: University of Chicago Press, 1960), pp. 255-260.

Osborne, David, and Ted Gaebler, Reinventing Government, Ch. 10, "Market-Oriented Government: Leveraging Change Through the Market".

Greenblatt, Alan. "Sweetheart Deals", from Governing. Dec., 2004. Washington , D.C.: Congressional Quarterly, Inc. pp. 20-25.

Class Presentation: Group #2

Week 10 -  Externalities.

Lecture and discussion: Steinemann, et. al., Chapter 9.

Garrett Hardin, "The Tragedy of the Commons", in The Concise Encyclopedia of Economics. 2002. The Library of Economics and Liberty. Liberty Fund, Inc. http://www.econlib.org .

Ruff, Larry, "The Economic Common Sense of Pollution," from The Public Interest, No. 19 (Spring, 1970) pp. 69-85. National Affairs, Inc.

Shelton, Stacy, "Too Much Soot Here", from The Atlanta Journal-Constitution, Dec. 18, 2004.

Portney, Paul R. "Market-Based Approaches to Environmental Policy", from Resources, Resources for the Future, No. 151. Summer, 2003. pp. 15-18.

Harrington, Winston, and Richard D. Morgenstern, "Economic Incentives versus Command and Control," from Resources, Resources for the Future, No. 152. Fall/Winter, 2004. pp. 13-17.

Boyd, James. "What's Nature Worth? Using Indicators to Open the Black Box of Ecological Valuation", Resources, Resources for the Future. No. 153. Summer, 2004. pp. 18-22.

Hammit, James K., and Jin-Tan Liu, "Risk in Perspective, Is There a 'Cancer Premium'?", Harvard Center for Risk Analysis. Vol. 12, Issue 2. (May, 2004). Cambridge, MA: Harvard University School of Public Health.

"Blending Sewage?" (no author given) from The Charlotte Observer, Dec. 16, 2004 .

Guest Speaker: Stan Meiburg, U.S. Environmental Protection Agency, Region 4, Deputy Administrator.

March 21-25 - Spring break.

Week 11 -  Public Goods.

Lecture and discussion: Steinemann, et. al., Chapter 10.

Downs, Anthony. Stuck in Traffic, Coping with Peak Hour Congestion. Washington , D.C. 1970. The Brookings Institution. pp. 7-34.

Seabrook, Charles Seabrook. "Changes Loom for Pristine Island", from The Atlanta Journal-Constitution , Nov. 26, 2004 , p. C1.

Class Presentation: Group #3

Week 12 -  Imperfect Information.

Lecture and discussion: Steinemann, et. al., Chapter 11.

Arrandale, Tom. "Not Wet Enough." from Governing. Aug., 2000. Washington, D.C.: Congressional Quarterly, Inc. pp. 42-46.

Class Presentation: Group #4

Week 13 -  Intertemporal Costs and Benefits.

Lecture and discussion: Steinemann, et. al., Chapter 12.

Class Presentation: Group #5 and #6

Week 14 -  Cost-Benefit Analysis and Applications

Lecture and discussion: Steinemann, et. al., Chapter 13 and 14.

Cornell, Gary. "Essay Concerning the Net Economic Development Effects of Transportation Improvements". Unpublished. 1979.

Nash, Christopher, David Pearce, John Stanley, "Criteria for Evaluating Project Evaluation Techniques", Journal of the American Institute of Planning, Vol.41, No. 2. Washington DC: American Institute of Planners. (March, 1975).   

Hill, M. "A Goals-Achievement Matrix for Evaluating Alternative Plans", Journal of the American Institute of Planners 34(1): 19-29. (1968)

Class Presentation: Group #7

Week 15 -  Cost-Benefit Applications

Class Presentation: Groups # 8

Review

Week 16 -   Final Exam