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2017　Principles of Public Systems Design

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Academic unit or major
Graduate major in Urban Design and Built Environment
Instructor(s)
Sakano Tatsurou 
Class Format
Lecture     
Media-enhanced courses
Day/Period(Room No.)
Tue3-4(W9-402,403)  
Group
-
Course number
UDE.D471
Credits
1
Academic year
2017
Offered quarter
4Q
Syllabus updated
2017/9/26
Lecture notes updated
-
Language used
Japanese
Access Index

Course description and aims

In this course students are required to read the theoretical texts on designing public systems. Public interventions are required when voluntary actions to pursue their own interests lead to socially undesirable outcomes. This situation is defined as collective action dilemma by game theory, which provides common research framework in various interdisciplinary social sciences such as Public Economics, Law and Economics, Economics of Organization, Economics of Governance, Political Philosophy and Sociology on Public Affairs.
The aim of this course is to provide the integrative perspective common to various approaches to solve collective action dilemma. By doing so, students are expected to acquire analytical skills to evaluate existing public systems.

Student learning outcomes

The goals of this course are as following: 1) to define problems of public intervention under the framework of collective action dilemma, and to understand why individual rationality conflicts with social desirability in dealing with first order dilemmas such as public goods provisions, externality, common pool resource problems, and charitable giving; 2) to understand that provision of institution to solve first order dilemmas is itself a collective action dilemma called second order dilemma; 3) to learn theories useful to solve these two level dilemmas such as self-organized collective action theory, property right economic theory, theory of organizational governance, and their application to new public management and quasi market.; and 4) thus, finally, to acquire capability to evaluate and redesign public systems in the real world.

Keywords

self-organized collective action theory, property right economic theory, theory of organizational governance, new public management, quasi market

Competencies that will be developed

✔ Specialist skills Intercultural skills Communication skills ✔ Critical thinking skills ✔ Practical and/or problem-solving skills

Class flow

It is required to read the texts assigned before the class. The instructor introduces the ideas behind the texts and class discussion will follow.

Course schedule/Required learning

  Course schedule Required learning
Class 1 Legitimacy of public interventions and collective action dilemma Define public problems as collective action dilemmas and explain legitimacy and efficiency of public intervention
Class 2 Institutional design and second order dilemma Explain problems of institution supply in terms of second order dilemma
Class 3 Institutional equilibrium and regime Understand mechanisms of equilibrium between institution and preference and explain typology of public intervention regimes
Class 4 Theory of regulation and transaction cost Understand economic theory of regulation and apply it to solve public problems
Class 5 Property right approach and CAP and Trade Understand property right approach and apply it to solve public problems
Class 6 Limited common property regime and self-organized collective action Understand theory of LCP regime and apply it to solve public problems
Class 7 Diversity of LCP regime and self-organized collective choice rule Understand framework to describe variety of LCP regimes and apply it to case studies
Class 8 Folk theorem, relational contract, and social capital Understand folk theorem and explain the role of relational contract and social capital in solving public problems
Class 9 Path dependency and dynamics of institutional change Understand path dependency and explain dynamics of institutional change
Class 10 経路依存性について理解し，制度変化のダイナミックスについて説明できるようになる Explain deficiency of bureaucracy in terms of informational rent seeking behavior
Class 11 Mechanisms of organizational governance Understand relational specificity and imperfect contract and apply these concepts for designing organizational governance
Class 12 Performance based management and autonomy Understand theory of new public management and design alternate organizational structure to change bureaucracy
Class 13 Hedonistic and Eudemonistic design Understand Hedonism and Eudemonism and explain their influence on institutional design
Class 14 Efficiency of Quasi-market Understand theory of quasi-market and apply it to solve public problems
Class 15 Impure Altruism and charitable behavior Understand economic theory of charitable behaviors and explain the influence of altruism on public goods provision

Textbook(s)

The reading materials are provided before the class.

Reference books, course materials, etc.

Ostrom, E., 2005, Understandig Institutional Diversity, Princeton University

Assessment criteria and methods

Mini quiz in each class: 40%
Term paper: 60%

Related courses

  • CVE.D312 ： Behavioral Theory of Public Systems
  • UDE.D409 ： Planning Theory

Prerequisites (i.e., required knowledge, skills, courses, etc.)

None.

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