The Economics of European Integration
Study Board of Market and Management Anthropology, Economics, Mathematics-Economics, Environmental and Resource Management
Teaching language: English
EKA: B540011102
Censorship: Second examiner: None
Grading: 7-point grading scale
Offered in: Odense
Offered in: Autumn
Level: Bachelor
Course ID: B540011101
ECTS value: 10
Date of Approval: 19-02-2018
Duration: 1 semester
Course ID
Course Title
Teaching language
ECTS value
Responsible study board
Study Board of Market and Management Anthropology, Economics, Mathematics-Economics, Environmental and Resource Management
Date of Approval
Course Responsible
Offered in
Level
Offered in
Duration
Mandatory prerequisites
Recommended prerequisites
Basic knowledge in Microeconomics (equivalent to course Mikroøkonomi (9115501)) and Macroeconomics (equivalent to Makroøkonomi (9105601)) are required. Additional knowledge in theories related to International Economics (equivalent to International Økonomi (9342301)) is helpful.
Aim and purpose
This course equips students with general knowledge in the field of the economics of international integration linked to the main economic policy issues that arise in this context - thereby giving specific reference to the European Union. The course thus enhances the students’ skills in analyzing international economic issues with special reference to issue of international trade, economic growth and development as well as cross-national labor markets. Further, the course provides insight into the principles of monetary integration among countries and discusses advantages and problems therein. When dealing with these issues, strong emphasize is given to the institutional dimension and economic policy. Besides, empirical studies on European and further international integration approaches are included. The course qualifies the students to provide complex analysis on relevant key policy issues in the European Union and a global context.
Content
Real integration: Mobility of goods, capital and labor
•Theories of trade integration and tariff analysis related to customs union in perfect and imperfect competitive markets
•Theories of a Single market both with respect to goods, capital and labor mobility
•Economic policies in the EU such as regional policy, competition policy, industrial policy and Common Agricultural Policy
Monetary Integration: Efficiency and macroeconomic stabilization
•The theory of optimum currency areas and the controversy on having a single currency
•The European Central Bank and monetary policy in the EU
•Fiscal policy in the EU. The Stability and Growth Pact
•Policy making and the consequences of the Euro crisis
Learning goals
The student must demonstrate knowledge in:
•Identifying and describing the main historical events and the main institutions in the EU
•Describing, comparing and explaining different stages of economic integration
•Describing and explaining spatial effects of trade integration and economic growth
•Describing and explaining labor mobility in the EU and the role of labor market efficiency
•Describing and explaining the following policies of the EU: common agricultural policy, competition policy, industrial policy and regional policy
•Explaining and identifying data connected to real integration in the EU and relate it to theory
•Describing, explaining and identifying, costs and benefits of monetary integration
•Describing and explaining fiscal and monetary policy in a monetary union in both the short and long run and under influence of macroeconomic shocks
•Describing the institutional set-up of EU financial markets and the role of the European Central Bank
•Describing and explaining central bank independence and conservatism
•Explaining the monetary policy strategy of the European Central Bank
•Describing and explaining the role of fiscal and monetary policy in a monetary union
•Defining and explaining the Stability and Growth Pact
•Describing and explaining financial integration and monetary transmission in the EU
The student must demonstrate skills in:
•Analysing and discussing the welfare effects of creating a free trade area, a customs union, a single market for commodities and a common market by using both figures and algebra.
•Analysing theories of economic growth and market size effects of integration
•Analysing theories of international migration and associated welfare effects
•Analysing and criticising the following policies of the EU: common agricultural policy, competition policy, industrial policy and regional policy by using both figures and algebra
•Analysing and discussing costs and benefits of monetary integration and evaluate the monetary union in the EU with respect to costs and benefits
•Analysing, discussing and evaluating the effects of fiscal and monetary policy in a monetary union in both the short and long run and under influence of macroeconomic shocks
•Analysing and discussing central bank independence and conservatism and evaluate the set-up of the European Central Bank
•Analysing the monetary policy strategy of the European Central Bank and relate it to data
•Analysing and discussing the role of fiscal and monetary policy in a monetary union
•Analysing and criticising the Stability and Growth Pact by using both figures and algebra
The student must demonstrate competences in:
•Identifying a relevant economic issue related to the EU and to provide a focused analysis of the issue
•Operating as decision maker in public or private institutions in the EU
•Making qualified judgements regarding the effects of economic and monetary integration as well as identifying winners and losers of these processes
Description of outcome - Knowledge
Description of outcome - Skills
Description of outcome - Competences
Literature
Examples
Baldwin, R. and C. Wyplosz (2015): “The Economics of European Integration”, McGraw-Hill, ISBN-13: 978-0077169657.
Reference publications available on the net:
•Treaty on Establishing the European Community.
•Treaty on European Union.
•European Commission "European Economy”, Statistical Annex, latest issue.
Teaching Method
Scheduled classes:
3 lectures per week in the first 10 weeks of the semester.
Study group type of teaching, where lectures will be provided in intensive sequences during the semester. Furthermore, students are expected to be active during lectures. After the lectures have ended, students will have time during the semester to work on the individual term paper.
Workload
Examination regulations
Term paper and Individual oral exam
Name
Term paper and Individual oral exam
Timing
Exam: January (December for external exchange students).
Reexam: February.
Tests
Exam
Name
Exam
Form of examination
Take-home assignment with oral defence
Censorship
Second examiner: None
Grading
7-point grading scale
Identification
Student Identification Card - Exam number
Language
English
Duration
Date for submission will appear from the examination plan.
Length
max. 12 pages (individual) or max. 20 pages (group of 2 students).
Examination aids
All exam aids allowed. However, it is not allowed to communicate with anybody.
Assignment handover
Course page in Blackboard.
Assignment handin
Via SDUassignment in the course page in Blackboard
ECTS value
10
Additional information
The examination consists of 2 parts
1.Term paper (individual or in group of 2 students)
2.Individual oral exam
One overall grade will be given.
1. Term paper
The term paper has to be submitted before the oral exam. If attending the re-exam, the student will be informed whether a new term paper needs to be written or whether the term paper submitted for the ordinary examination will be accepted. In the latter case, the student will only need to participate in the oral re-exam.
Internet Access: Necessary.
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2. Individual oral exam.
20 minutes with 20 minutes preparation with all examination aids.
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To pass the exam the student must participate in both parts.
The oral exam is based on the literature in syllabus but there may also be questions for clarifications related to the term paper.
EKA
B540011102
External comment
NOTE - This course is identical with the former course 9102701 The Economics of European Integration.
Used examination attempts in the former identical course will be transferred.
Courses that are identical with former courses that are passed according to applied rules cannot be retaken.
The student is automatically registered for the first examination attempt when the student is registered for a course or course element with which one or more examinations are associated. Withdrawal of registration is not possible, and students who fail to participate in an examination have used one examination attempt, unless the University has made an exemption due to special circumstances.
The student is responsible for registering for 2nd and 3rd examination attempt.
Evaluation at the re-exam may be changed.