To study fundamentals of economic theories (e.g. microeconomics and transport economics) used for analyzing and evaluating infrastructure development.
Studying fundamental ways of economic thinking about infrastructure projects such as: (1) Microeconomic theory on costs and prices; (2) Economic evaluation method of infrastructure projects; (3) Macroeconomic impacts of public works/investments; (4) Characteristics of public services and their financial and pricing systems; and (5) Logistics and Private Finance Initiative (PFI).
Economics, Microeconomics, Transportation and Urban Economics, Public Economics, Market Failure, Externality, Economic Policy
|✔ Specialist skills||Intercultural skills||Communication skills||Critical thinking skills||Practical and/or problem-solving skills|
While theoretical foundations of economics are explained, mid-term exam will be set. The final exam will also be set.
|Course schedule||Required learning|
|Class 1||Role of economic analysis for evaluating infrastructure develpment||- Infrastructure project and its economic analysis - History of cost benefit analysis - What is the economics way of thinking?|
|Class 2||Foundations of consumer behavior theory||- Consumption possible frontier (budget constraint) - Preference, utility, indifference curve, marginal rate of substitution - Choice (utility maximization) - Demand function, price/income elasticities - Consumer surplus and benefit calculation - Duality|
|Class 3||Foundations of producer/firm behavior theory||- Variable input, Fixed input, diminishing marginal productivity - Short term, Long term/Average, Marginal costs - Variable/Fixed Costs - Cost Minimization Problem and Cost Function - Production Technology - Profit Maximization and Production Function - Producer Surplus - Variable/Fixed Cost Functions|
|Class 4||Theory of market||- Law of Single Price - Price Taker and Price Maker - Market Equilibrium - Excess Demand/Supply - Partial/General Equilibrium - Consumer/Producer/Social Surplus - The 1st Theorem of Welfare Economics - Monopoly and Law of decreasing Marginal Cost, Oligopoly|
|Class 5||Market failure and its correction||- Monopoly - Externality - Congestion charging - Public goods|
|Class 6||Cost-benefit analysis for infrastructure projects||- Principle and history of cost benefit analysis - Social discount rate - Definition and measurement of economic benefit|
|Class 7||Marcoeconomic impacts of public investment||- Public investment - Multiplier effects - Inflation and deflation|
|Class 8||Mid-term exam and its description||Mid-term exam and its description|
|Class 9||Characteristic of transport services and relevant regulations||- Characteristics of transport service - Cost characteristic of transport service - Purpose, classification and implementation of regulation|
|Class 10||Funding of transport infrastructure and service and their evaluation||- Evaluation of transport infrastructure investment - Funding of transport infrastructure investment|
|Class 11||Theory and evaluation of transport fare policies||- Fully distributed cost method - Incentive-based regulation|
|Class 12||History and prospects of the use of private funding for infrastructure development in Japan||- What is Private Finance Initiative? - Agency-based theory of contract|
|Class 13||Issues of Japanese Energy Policy - A case of electric service||- Current situation of energy related industries in Japan - Production and demand for energy resource in Japan|
|Class 14||Roles and issues of road user charging||- Fundamental theory of road user charging - Issues and prospects of road user charging in practice|
|Class 15||Policy issues on urban freight logistics and facilities||- Fundamentals of logistics - Evaluation of logistics/freight policies|
Particularly not. Handouts will be circulated during the class and also be uploaded to OCWi.
The followings are all study-aid books.
- Takeuchi (2008) Introduction to transportation economics, Yuhikaku.
- Yamauchi & Takeuchi (2002) Transportation economics, Yuhikaku.
- Hatta (2009) Introduction to Microeconomics 1 & 2, Toyokeizai.
- Fujii (2010) Public works saving Japan, Bunshun.
Mid-term exam (40%), Final exam (40%), Assignments & Small quiz (20%)
It is recommend to take "CVE.D201 ： Fudamentals of Infrastructure Planning", "CVE.D210 ： Planning Theory for Civil and Environmental Engineering" and "CVE.D301 ： Traffic and Transportation Systems".