AØKA08081U Economics of the European Union (EU)

Volume 2015/2016
Education

Recommended elective from the 3.year of BSc in Economics

Elective at MSc in Economics

 

Content

This is an introductory course on the economics of the European Union focusing on main economic and legal aspects of European integration as well as its policies. The course covers the historical development of the EU; regional cohesion, and competition policies; labor mobility and migration; the Common Agricultural Policy (CAP); monetary unification and the impact of the single currency; the common monetary policy in the euro area; and fiscal policy within a monetary union. In addition to these topics, the course also covers recent developments in the EU including the euro crisis and the policy response to the crisis.

The course is divided into three parts. The first part will cover the historical, political and institutional foundations of European economic integration including the role of the European Commission, the European Parliament and the Councils of Ministers.

The second part analyzes European integration from a microeconomic perspective focusing on the effects of integration on economic growth, both at a national and a regional level. Key topics include the Common Agricultural Policy and the Rural Development and Regional Policy funded by the European Union. In addition, to these topics, we also discuss labor market policies, the European social model and flexicurity, and labor migration.

The third part focuses on current issues including the euro crisis. First, we consider the micro and macroeconomic aspects of monetary integration. Starting with the theory of optimum currency areas, we analyze the economic and institutional aspects of the European Monetary Union, including the Stability and Growth Pact, Fiscal Compact and Banking Union. Then we turn to the current financial crisis in Europe focusing on the banking crises in Ireland and Spain and the Greek debt crisis. The policy responses to these crises are also discussed including the question whether these policies can resolve the crises and prevent future crises.

Learning Outcome

After completion of the course, students should be able to

  • describe the history of economic integration in Europe since 1973;

  • explain and describe the main political and institutional characteristics of EU and the European Monetary Union;

  • explain and describe the main problems in economic integration and with the main policies adopted by the EU;

  • understand and explain theoretical and applied issues of the process of Economic and Monetary Union in the EU;

  • understand and explain the role and distinctive features of labor markets in the EU;

  • understand and explain the role and evolution of the common agricultural policy in EU;

  • understand and explain the consequences of EU policy for the rest of the world;

  • explain the key features of the Single European Act and apply the basic theory of custom unions;

  • explain the theory of optimum currency area and apply this theory to the analysis of the European Monetary Union;

  • explain the role and institutional characteristics of the common monetary policy and of the national fiscal policies in the European Monetary Union;

  • explain and describe the causes of and policies designed to resolve the euro crisis;

  • continue to undertake further study of economic integration with a high degree of autonomy.

The course provides students with competences that relate primarily to international economic policy, economic integration and institutional features of the EU and the European Monetary Union. For example how a financial manager or a policymaker should use his/her knowledge to answer questions such as: What are the main advantages/disadvantages of international cooperation and economic integration within the European Monetary Union? How should European institutions be designed in order to support further economic integration while at the same time maintaining national sovereignty? Is it necessary for the European Monetary Union to develop into a political union or a Federal State? Why is there a crisis in Europe today and can such crises be prevented in the future? How should the crisis in Europe be resolved?

Baldwin, Richard and Charles Wyplosz: The Economics of European Integration, 5th edition, 2015.

Journal articles

 

Intermediate microeconomics and macroeconomics corresponding to Micro B and Macro B or the equivalent are strongly recommended. There is no formal prerequisite in mathematics/statistics, but some of the readings will involve empirical studies and prior knowledge of empirical analysis corresponding to Econometrics A and B would therefore be an advantage.
Schedule:

The course consists of 3 hours of classes (lectures) every week for 14 weeks.

For enrolled students please find more information of courses, schedule, rules etc at
https:/​/​intranet.ku.dk/​economics_ma/​courses/​Pages/​default.aspx

Timetable and classroom:
For time and classroom please press the link under "Se skema" (See schedule) at the right side of this page (15E means 2015 Efterår (Autumn))
  • Category
  • Hours
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 161
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Individual written closed-book exam at the computers of Copenhagen University
Exam registration requirements

Two homework assignments have to be completed and approved.

Aid
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
20% censorship
Exam period

The exam takes place 15 December 2015 at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English),student intranet for Examination (KA-Danish) and student intranet for Examination (BA-Danish).

Re-exam

Same as the ordinary exam. But if only a few students have registered for the re-exam, the exam might change to an oral exam. This means that the examination date also will change.

 

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.