IPEM Perfect Complementarity

7/29/2019 IPEM Perfect Complementarity

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IPEM,Graduate School of

Economics and Management,Tohoku University

SyllabusSyllabus20120122SpringSpringSemesterSemester


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Table of ContentsCourse Instructor PageMicroeconomics II Ryo KAWASAKI 1

Macroeconomics II Koki OIKAWA 3

Econometrics II Yoshihiko TSUKUDA 5

Applied Macroeconomics Ryo HORII 8

Japanese Economic History Hiroshi HASEBE 11

Corporate Finance Yoshio KANAZAKI 13

Regional Enterprise Michi FUKUSHIMA 15

Career Development Kazuko SUEMATSU 17


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Class Title Microeconomics II

Semester Spring

Credit 2Instructor Ryo Kawasaki

E-mail

Office Hour

[email protected]

By appointment

Time Tuesdays 14:40-16:10

Place Seminar Room 24

Course Objectives and Outline

One of the themes of Microeconomics I was that markets work well. The result is founded on

several assumptions some of which do not hold in practice. This course takes a deeper lookinto markets and allocation of goods through a theoretical analysis of auctions.

Learning Goal

The goal of the course is to be able to understand the theoretical aspects of auction theory,

which then can be used for further study of other markets.

Course Content

See the course schedule below for details.

Tentative Course Schedule (approximately 1-2 lectures on each topic)

1) Mathematical review: concavity2) Strategic form games and Nash equilibrium

3) Extensive form games, strategies, and subgame-perfect equilibrium

4) Basic model of auctions under complete information

5) Decision under uncertainty

6) Bayesian games and Bayesian-Nash equilibrium

7) Types of auctions

8) Revenue equivalence theorem

9) Supermodularity and monotone comparative staticsAssessment Criteria

Homework: 36%, Exam: 64% (The actual percentage may be subject to change

depending on the number of assignments.) Homework will be given each week and

is due by the beginning of the next lecture.

Textbook and Reading List

There is no designated textbook for the class.

References (in order of relevance) (optional reading):

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1. Jehle, G. and P. Reny. Advanced Microeconomics. Addison Wesley, Second

Edition, 2001.

2. Milgrom, P. Putting Auction Theory to Work. Cambridge University Press,2004.

3. McAfee, P. and J. McMillan. Auctions and Bidding, Journal of Economic

Literature25, 699-738, 1987.

4. Sydsaester, K. and P. Hammond. Essential Mathematics for Economic Analysis.

Prentice Hall, Third Edition, 2008.

Note (Requirements)

Knowledge of topics covered in Microeconomics I is highly recommended for taking

this course, although a successful completion of Microeconomics I is not required for

registration for this course. Schedule may be subject to change.

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Class Title Macroeconomics II

Semester Spring

Credit 2Instructor Koki Oikawa

E-mail

Office Hour

[email protected]

to be announced

Time Tuesday, 8:50-10:20



This course is the second half of the Macroeconomics course work in IPEM. Using the

framework established in Macroeconomics I, students will learn the knowledge and skillsnecessary for the modern macroeconomic analyses. Topics covered in this semester are

listed in "Course Schedule" below.

Learning Goal

I hope you will grasp the dynamic general equilibrium (DGE) approach --- how it

is formulated, how it works, and what it implies. Because the DGE approach is

standard in the current macroeconomic analysis, this forms the basis for your

further study of macroeconomics.

Course Content

Each class consists of exercise and lecture. At the beginning of every class, I will give you a

short test related to the previous lecture for quick review. So don't be late for class. Also, I will

give you problem sets, most probably two times during the semester.

Course Schedule

1) Optimal Growth Theory: Decentralized Economy2) Overlapping Generations Model3) Real Business Cycles4) Endogenous Growth TheoryAssessment Criteria

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You have to take an exam at the end of the semester. This final exam amounts to 50%

of the final evaluation. And 30% is the problem sets, and the last 20% is the short tests.


David Romer,Advanced Macroeconomics, McGraw-Hill/Irwin.

Note (Requirements)

Only students who have taken or at least attended Macroeconomics I in the

previous semester can take this course. I won't repeat explanation on the stuff

studied in the previous semester.

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Class Title Econometrics II

Semester Spring

Credit 2Instructor Yoshihiko Tsukuda, Professor

E-mail [email protected]

Time Friday 8:50 10:20



Econometrics is a continuation of Econometrics .

Econometrics together with microeconomics and macroeconomics constitute indispensable

part for all economics major students. Students in many fields that require data analysis,including development economics, finance, international economics, labor economics,

macroeconomics, and public finance will find this course useful when they write a thesis. The

emphasis in this class is on applying econometrics to real world problems. The focus is on

understanding and interpreting the assumptions in light of actual empirical applications. The

mathematics for college algebra and basic probability and statistics are required.

Computer skill is indispensable to carry out data analysis. Supplementary class will be

offered to teach how to run the statistical software of EVIEWS by a teaching assistant.

Learning Goal

Econometric methods are relevant in virtually every blanch of applied economics. They come

into play either when we have an economic theory to test or when we have a relationship in

mind that has some importance for business decisions or policy analysis. An empirical analysis

uses data to test a theory or to estimate a relationship. The goal of the course is for students to

understand what econometrics is and to acquire appropriate skills to empirical economic

analysis.

Course Content

This class of Econometrics covers the materials of chapters 5 through 8, chapters 10 and 11,

in Wooldridge's text book, "Introductory Econometrics: A Modern Approach". The text

book consists of three parts: Part 1 (Regression analysis with cross-sectional data),

Part 2 (Regression analysis with time series data), Part 3 (Advanced topics).

Although the book is designed for undergraduate economics majors, I believe it is

also well suited for a master's level course. Students are expected to do home works

in order to fully grasp the materials of each chapter.

Course Schedule

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1) April 13

Brief review of regression analysis taught in Econometrics .

2) and 3) April 20 and 27Chapter 4: Multiple regression analysis: Inference

This chapter turns to the problem of testing hypotheses about the parameters in the population

model. We begin by finding the distribution of the Ordinary Least Squares (OLS) estimators

under the normality assumption of the population errors, and then discuss hypothesis testing

about individual parameters.

4) and 5) May 11 and 18

Chapter 5: Multiple regression analysis: OLS asymptotics

In chapters 3 and 4, we covered the finite sample properties of the OLS estimators in the

multiple regression model. In addition, it is also important to know the asymptotic properties

(large sample properties) of the estimators and test statistics.

6) and 7) May 25 and June 1

Chapter 6: Multiple regression analysis: Further issues

This chapter brings several issues in multiple regression analysis that we could not conveniently

cover in earlier chapters, but are important for applying multiple regression to a broad range of

empirical problems. These include data scaling, choice of functional form, and selection of

regressors.

8) and 9) June 8 and 15

Chapter 7: Multiple regression analysis with qualitative information:

Binary ( or dummy) variables

In previous chapters, the dependent and independent variables in multiple regression models

have had quantitative meaning. In empirical work, we must also incorporate qualitative factors

into regression models such factors as gender or race of individual, the industry of a firm, and

the region of the United States.

10) , 11) and 12) June 22, 29 and July 6

Chapter 8: Heteroskedasticity

Homoskedasticity assumption, introduced in Chapter 3 for multiple regression, states that the

variance of unobservable error is constant. This assumption fails whenever the variance of error

changes across different segment of population. This chapter deals with the consequences of

heteroskedasticity for the OLS estimation, and discusses testing problems for heteroskedasticity

13) and 14) July 13 and 20

Chapter 10: Basic Regression Analysis with Time Series Data

This chapter studies the properties of OLS for estimating linear regression models using

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time series data. Although the classical linear model assumptions for time series

regression case have features in common with those for the cross-sectional case, they

also have some significant differences that we will need to highlight.Assessment Criteria

Home works (40%), mid-term exam (30%), final exam (30%)


Wooldridge, Jeffrey M., "Introductory Econometrics: A Modern Approach"

Class materials will be handed out at the first day of the class.

Note (Requirements)

Attendance is indispensable to understand the course materials.

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Class Title Applied Macroeconomics

Semester Spring

Credit 2Instructor Ryo HORII, Associate Professor

E-mail

Office Hour

horii [[atmark]] econ . jpn . org

(replace [[atmark]] with @ and remove any space).

Upon appointment by e-mail

Time Mondays, 13:00-14:30



In Japan and many East Asian countries, the fall in the fertility rate and the expectedfall in population pose one of the largest threats on the sustainable growth of the economy in the

macro level. Interestingly, the average number of children born to a married couple has not

fallen significantly in Japan. The recent fall in the total fertility rate is driven by the

postponement of marriage and also by the rise in the number of people who do not marry in

their lifetime. Why do people decide to or not to marry and how these decisions determine the

pattern of matching between men and women? Using the search and matching theories, this

course studies the determinant of peoples decision to marry and also its equilibrium outcome in

the macro level.

Learning Goal

To learn the process of family formation not in terms of sociology or biology, but in terms

of the formal models of economics.

To understand the economic incentives behind marriage, childbearing and education.

To become familiar with the search-matching framework for modeling decentralized

markets (such as labor markets)

To become able to analyze the effects of economic circumstances (e.g., wage gaps) and

economic policy (e.g., taxation) on the equilibrium of the marriage market and also on the

fertility.

Course Content

Lectures will be given according to the following list. At later dates during the course,

students (either individually or as groups) are requested to do presentations on some portion of

the course materials.

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Course Schedule

The followings are the topics planned to be covered in the course. Note that the list is

tentative and subject to change. The detailed schedule of the course is to be announced duringthe lecture.

1. Course orientation (on April 9th)2. Some facts on marriage among developed countries

* Marital status, histories, and transition

* Relationship between marriage and work/wage.

* Assortative matching

* Relationship between marital status and child

3. A microeconomic model of the gains from marriage 1:* Sharing public goods within a household

* Specialization by spouses

* Risk sharing by household members when credit market is imperfect

4. A microeconomic model of the gains from marriage 2:* Childbearing as a joint production

5. Matching on marriage market 1:* Stable matching without transfers

* Stable matching with transferable utilities

6. Matching on marriage market 2:* The general framework of the search model

* Search and assortative matching

*Bargaining in marriage

7. Sharing the gain from marriage 1:* Determination of shares with a finite number of agents

* Continuous case

8. Sharing the gain from marriage 2:* Matching with general utilities

* Matching by categories

9. Investment in schooling and the marriage market 1:* The basic model of pre-marital investment

* Marriage market, investment decisions, and equilibrium

10. Investment in schooling and the marriage market 2:* Gender differences in the incentive to invest

* Impacts of the wage gap, household roles

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* Division of labor and career choices

11. Equilibrium model of marriage, fertility and divorce 1:* The setup of the general model* Individual choices, aggregation and the equilibrium

12. Equilibrium model of marriage, fertility and divorce 2:* An example of multiple equilibria

* The effects of income uncertainty and ex-post heterogeneity

13. Children and Family Structure 1:* Modeling children as public goods for household members

* The legal framework when divorce happens

* The allocation of household resources

14. Children and Family Structure 2:* Derivation of equilibrium

* Welfare considerations

15. Summing up

Assessment Criteria

The participants of the course are assessed according to their contribution to the

course, which includes (but not limited to): presentations on specified materials,

participation in discussion, and attendance to the class.


Martin Browning, Pierre-Andre Chiappori, and Yoram Weiss Family Economics,

yet to be published, draft version (under the name of family book 2011)

downloadable from the authors website at http://www.tau.ac.il/~weiss/fam_econ/

Note (Requirements)

Knowledge of intermediate level macroeconomic and microeconomics (e.g,,

Macroeconomics I,II and Microeconomics I, II at IPEM) is expected.

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Class Title J apanese Economic History

Semester Spring

Credit 2Instructor Hiroshi HASEBE Professor

E-mail

Office Hour

[email protected]

Wednesday, 18:00-19:00


Place Seminar Room, 3


The purpose of this class is for the students to have the historical framework of the

Japanese economic society in the meaning of its socio-economical culture, system anddynamism. The first object of this course is to provide the basic knowledge on the

feature and structure of the pre-modern economic society in Japan, so called Tokugawa

Japan, with the historiographical intelligence. The second object is to provide the

essential historical points on the modernization and industrialization process of

Japanese economic society based on the historical researches.

Learning Goal

Students will become to understand the essential outline of the modernizationprocess in Japan and will be able to narrate the history of Japanese economy from the

socio-economical view point.

Course Content

This is a historical research course in which topics are basically presented in the style of lecture

using power point. Topics are as course schedule.

Course Schedule

1) April 10Course Orientation; about the change of view point in the economic history research

2) April 17Lecture 1; the ordinary people in the 19th century Japan

3) April 24

Lecture 2; the Meiji Restoration in 1868

4) May 1

Lecture 3; what was the modernization of Japan?

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5) May 8

Lecture 4; what was the Tokugawa Regime?

6) May 15Lecture 5; the rural society and rural communities

7) May 22

Lecture 6; rising market economy, trading and transaction in the Tokugawa Japan .

8) May 29

Lecture 7; early modern City that was called Jyo-ka

9) June 5

Lecture 8; what was the modernity?.

10) June 12Lecture 9; the Chiso Kaisei, Meiji government budget and the renewal of land tax system

11) June 19

Lecture 10; establishment of the modern financial system and banking system in Japan

12) June 26

Lecture 11; the Syokusan-Kogyo as making industry policy

13) July 3

Lecture 12; first economic growth and industrialization process in Japan

14) July 10

Lecture 13; wars and national budget problem

15) July 17

Lecture 14; entrance as the youngest empire state on the world stage of imperialism

Assessment Criteria

Students will be evaluated based on participation (20%), mid-term exam (30%), and

the final report (50%).


Reading list and documents will be provided in the class.

Note (Requirements)

High attendance is required to keep the momentum and progress of the projects.

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Class Title Corporate Finance

Semester Spring

Credit 2Instructor Yoshio KANAZAKI, Professor

E-mail

Office Hour

[email protected]

By appointment

Time Thursday 10:30-12:00



The purpose of this course is to provide students with the theory and knowledge of corporate

finance. Corporate finance is a study regarding how corporations make financial decisions.Financial decisions are divided into two types. One for investing in real assets and other for

raising money. Before learning what financial decisions are good, we have to study how

investors invest in stocks and bonds issued by corporations and how expected returns on stocks

and bonds are determined in the financial markets reflecting risks of securities.

Learning Goal

Grasping the fundamentals of following contents. The concept of risks involved with securityinvestments, why diversification can reduce portfolio risks, what determine the expected returns

on securities, rational rules for real assets investments made by firms, how much corporations

should borrow money, and how much corporations should pay dividends to shareholders.

Course Content

The course proceeds along the contents of the textbook.

Course Schedule

1) Introduction: goals and governance of the firm

2) Present value

3) Valuing bonds

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4) The value of stocks

5) Investment criteria

6) Portfolio theory and the capital asset pricing model

7) Debt policy

8) Payout policy

Assessment CriteriaAttendance (30%), final exam (70%)


Brealey, Myers, and Allen, Principles of Corporate Finance 10/E,

McGraw-Hill/Irwin, 2011.

Note (Requirements)

Basics of statistics

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Class Title Regional Enterprise

Semester Spring

Credits 2Instructor Michi FUKUSHIMA

E-mail

Office Hour

[email protected]

anytime (appointment needed in advance)

Time Friday 18:00-19:30



The purpose of the course is for students to understand the situations and features

of Japanese businesses, especially SMEs and Regional Enterprises (REs). We alsointroduce basic business principles and concepts, including specific examples.

Learning Goal

The students are required as follows; (1)to understand the situations of REs and SMEs in Japan,

(2)to learn theories explaining the phenomena, (3)to compare between the SMEs and REs in

Japan and their own countries, (4)to think how to apply what they have learned to their own

countries SMEs and REs.

Course Content

One topic is picked up in each class. The students learn and think the topic through

listening lecture, case study and group discussion. A class will consist of three parts:

(1) lecture on the topic (theories or concepts), (2) case study, (3) group discussion.

Course Schedule *The schedule is subject to change.

1) April 13

Orientation: What is the purpose of this course? Self-introduction.

2)April 20

Enterprises and region: How are regional factors and enterprises activities related?

3)April 27

Time-honored companies and business transformation in Japan: Why are there many

time-honored companies in Japan? How have they survived?

4) May 11

Resource creation by RE: How does exhausted countryside revive their economy?

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5) May 18

Knowledge creation by RE: How do Japanese companies make innovation happen?

6) May 25Spontaneously emerging clusters in Japan: What is the secret of innovative region in Japan?

7) June 1

Japanese cluster policies and their results: What is the role of government in making innovation

happen?

8) June 8

Collaboration among industry, academia and government in Japan: What are the roles of

academia and regional entities in making innovation happen and how do they collaborate?

9)June 15

Ventures and RE: Why are there so few venture created in Japan?

10)July 29

Internationalization of RE: How do REs get to be global companies?

11)July 6

Revitalizing the primary industry: Can Japanese the primary industry survive in international

competition and how?

12) July 13

Restoring from the East Japan great earthquake: How have the companies that suffered from

3.11 Tsunami revived?

13) July 20

Final Examination

Assessment Criteria

Students will be evaluated based on: (1) class attendance, (2) in-class

participation, (3) group discussion participation and presentations, (4) reports, and

(5) the final exam.


Materials are prepared by the instructor. For further study, the books as follows are useful;

Ibada-Arens,K(2005) Innovation and Entrepreneurship in Japan, CAMBRIDGE

Whittaker, D.H. (1997) Small firms in the Japanese economy, CAMBRIEGE.

Note(Requirements)

Absent without notice is never allowed.

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Class Title Career Development

Semester Fall

Credit 2Instructor Kazuko Suematsu, Associate Professor

E-mail

Office Hour

[email protected]

Tuesday, 14:30~16:00




This course provides students with opportunities to explore different career choices and life

styles, identify their values and goals, and learn basic knowledge and skills necessary to seekemployment at Japanese or multi-national companies. Presented with a conceptual framework

of leadership and career development, students will gain insight into diverse career choices

through readings and class discussions. Simultaneously, they will learn practical skills such as

business manners, resume-writing, discussion, and presentation.

Learning Goal

Students will be equipped with knowledge and skills to utilize for obtaining information about

career as well as life-style choices.

Students will explore their career/personal attributes and future marketability.

Students will learn various career as well as communication skills related to a job

search in Japan and other countries.

Course Content

The class will be interactive and experience-based. Students are expected to be autonomic,

self-motivated, and active learners/participants in class. Reading, discussion, and task-based

assignments are designed to raise students awareness for future career and their marketability.

The assignments are done both individually and in groups, depending on the themes.

Course Schedule

1) Introduction:The instructor will clarify the expectations and goals of the course.

What is career and how much do you know about it?

The class will explore career development theories, the pyramid through exercises.

A guidance about company profile research.

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2) Effective Presentation:Speech and visual delivery

Oral and written communication3) Career choices: learn from role-models. What is it like to pursue career in the

international society and how can you prepare for that?

4) Company profile presentationSelf-discovery/evaluationhow much do know about yourself such as traits and

skills Identify your strengths and weaknesses and learn how to present your

competitiveness.

5) Company profile presentation30 seconds commercial presentation

Create a life-planner: identify your goals and skills you need to attain the goals

Occupations: Career Interest Inventory

6) Company profile presentationThe best career choices: life-planner presentation & feedback

Individual/group assignments: job-hunting process/strategy in my country

7) Company profile presentationJob-hunting presentation

Resume-writingeffective and attractive presentation in writing

8) Career choices: learn from role-models. Career-building in Japanese companies inand outside Japan. How do you work effectively with Japanese colleagues and

what do they expect from you?

9) Company profile presentationInterviewshow can you survive the interviews?

10)Company profile presentationJob-hunting strategies in Japan: unique process, collecting information, making

pre-entry

11) Company profile presentation

Job-hunting strategies in Japan: attending company seminars, making an entry

Business manners, appearance and manners


Job-hunting strategies in Japan: interviews


Interviewspractice and feedback

14) Final Presentation

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15) Final Presentation

Assessment CriteriaStudents will be evaluated based on: class attendance, assignments, presentations, and in-class

participation


To be announced in class

Note (Requirements)

IPEM Perfect Complementarity

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