| SES # | LECTURE NOTES |
|---|---|
| 1-2 | Theory: Public Goods and Externalities Application: Use of zoning to achieve particular ends in a Massachusetts suburb. Example taught by a faculty member who had been the head planner for several suburban towns. Example focuses on difficulty of translating goals into regulations. |
| 3-6 | Theory: Location Theory The three papers combine to give a lively and accessible review of the major theories of why economic activity agglomerates, the role (if any) of information technologies in diffusing the activity, etc. This is also a chance to reintroduce monopolistic competition since locational differences are enough to turn otherwise identical producers into monopolistic competitors. Application: The New York City budget situation. Case taught by the last city budget director under Rudy Giuliani. Emphasis is on how you think about dealing with the current deficit while minimizing those service cuts which will drive more business and middle class families out of the city, thereby deepening the problem. |
| 7-8 | Theory: Very Basic Investment Tools - NPV, IRR, etc. Application: Evaluating a proposed building renovation project. Case taught by an adjunct faculty member who has a real estate finance practice. Assigned case consists of several pages of background, questions, and a spreadsheet with all the relevant information (and other information that is not relevant). Before class, students have to use the spreadsheet information to set up and perform the calculations required to answer the questions. |