Economics of Transition
Syllabus – Spring 2010
Instructor: Dr. Prof. FAN Gang
Email: fangang@phbs.pku.edu.cn
Objectives
The objective of this course is to understand the importance of institutions in determination of economic behaviors and consequences, and the general issues of economic transition from the planned economy to the market systems, which are one of main event in late 20 century and still ongoing in China. The course provides the theoretical conceptual framework and methodology to understand various policy issues in economic reforms. Students are encouraged to apply general theories to the concrete reform issues such as enterprise reform, financial reform, social security reform, etc. which will be still very relevant in the real world today and tomorrow.
Process
The classroom teaching is aimed at providing students with conceptual framework and analytical tools. Through the course, students should become familiar with all main issues and terminologies in both theories of economic transition and reform policy debates. Facts are used only as examples to illustrate the logics. The homework and mid-term test will involve students in either literature reading or applying theories to the real world cases or stories.
Prerequisites
Having knowledge of basic general equilibrium theory, public economics, and political economy in general. Better having read some text book or literatures on Institutional economics.
Grading
Grades will be assigned on the basis of student performance and weighted as follows:
Home work | 30percent |
Midterm exam | 30 percent |
Final exam | 40 percent |
Total | 100 percent |
Textbook
G. Roland, , The MIT Pre ss, 2000.《转型与经济学》，经济学译丛，北京大学出版社，2002.
Course outline:
1, Introduction: institutions, Institutional transition and economics of transition
General Theoretical Issues
2. Fundamental conceptual framework for ET: Non-Pareto Change
3. Politics of transition: Historical Choice of the approaches to transition
4. Mismatch: Incomplete information and Incompatibilities of Institutions
5. “Cost of Incoherence” : transitional disorders caused by the interest conflicts and incomplete information
Reform Approaches: Minimizing the Costs
6. Gradualism: Dynamic process of duel-track transition
7. “Transitional Hybrids” vs. mixed system
8. “Sequencing” vs. “Parallel Partial Progression”
9. M Structure and Regional Competition on Approaches to transition
10. Institution transplantation, imitation, and experimentation
Other issues
11. Economic Structural changes and economic growth in transition
12. “Culture factors” and difference in history background: Path dependence
13. Measurement of transition: “institutional variables” and “Marketization Index”
Special Issues: Reform in various areas and sectors
12. Enterprise Reform;
14. Price Reform;
15. Financial Reform;
16. External reforms: trade and foreign investment;
17. Government reform;
18. Reforms in social sectors.
Student Responsibilities
Attend ALL classes You are now in a graduate school, and your work ethics should be the same as what it would be in a high responsibility job.
The more you read (before or after the classes) the better!
Do your homework independently and think through by yourself!
Stay on top of the news -- institutional changes that happen every day in China one way and another. The current development issues may be included in your home-works or the midterm and final exams..