Advances in Decision Making Theory and Applications (4 ECTS credits, 32 academic hours)
Dates: July 04 - 22
We make decisions every day and every hour: which summer school to choose, which pullover to buy, where to go on vacation. The course presents the core concepts of rational and efficient individual and social decisions, including political decisions.
Topics to be covered include:
- Decision Making – why, when and under which circumstances?
- Aggregation models
- Efficiency on Micromarkets. Cost-benefit Analysis
- In which circumstances and why political decisions are made?
- Main concepts in game theory
- Voting and Manipulation in Voting
- Power distribution in organizational bodies.
- Polarization in parliaments
- How to measure the results of election?
Students who pass the course can proceed with their work with the lecturer and his colleagues on different projects. Such projects will use some models presented in the lectures with application to the data related to the students' countries. For example, one of the models discussed in the lectures is power distribution in the parliaments of countries. The project might then be an evaluation of power distribution in a specific parliament of student's country in a specific period. Another example can be an evaluation of central elements in the network of trade operations in a country. Such projects can be published afterward in some scientific journals.
Challenges to EU–Russia Economic Links (2 ECTS credits, 16 academic hours)
Dates: July 25 - August 05
The course presents the analysis of the major challenges to the EU – Russia links. There is a clear contradiction between the huge potential for cooperation and the current state in relations, which are at a mess. This course, while disclosing the fundamentals and a historical retrospective of relations between Russia and the EU, is focused on the most recent developments in Europe, including unrest in Ukraine, and their impact on relationships in Europe. Large part of the course is dedicated to problems of economic cooperation, discovering the burden of economic sanctions. The aim is to understand the reasons for the current problems and to dress up the likely scenarios of the eventual development of links with largely unused potential for partnership. Topics included in the course ignite discussion and debate. Different points of view on different aspects of the cooperation dilemmas are provided to create an objective vision of the controversial issue.
Politics and Economics of Energy (2 ECTS credits, 16 academic hours)
Dates: July 18 - 29
This course puts a test on conventional theoretical approaches on global energy issues. It is based upon empirical evidence of the current trends on the global energy markets, unveiling policy issues in the study of energy that span across political science and international economics.The course takes a very broad view and introduces students to energy as understood by scholars of international security and cooperation as well as economic and political development.We investigate the major policy issues of the day: the development and current status of the global energy markets, with particular emphasis on Russia, EU, China and the USA.The role of the international organizations is given the focal place, especially the historical importance, the current development and future relevance of OPEC.The course attributes a special role to the influence on the industry of the technological progress in alternative energies and the “threat” of fracking to traditional gas producers.
Behavioral Economics (3 ECTS credits, 24 academic hours)
Dates: July 11 - 22
A frequently heard complaint from students of economic theory goes something like this: 'But it doesn't work like this in real life!' Unfortunately, it takes a long time of studying general cases to arrive at the realization that life itself is a special case of a general rule. During this course we will attempt to reconcile theory and practice: we will see how mental and emotional filters shape the choices people make individually and in groups. We will also try to understand what rational choice is, and you will conclude for yourself which rational patterns to follow (or not follow) in real life whenever you have to make a decision as a consumer or as a producer or even as a policymaker.
Corporate Finance (3 ECTS credits, 24 academic hours)
Dates: July 11 - 22
The course aims to develop the theoretical framework of the major financial decisions in a public company (corporation) operating in market environment. Corporate Finance covers capital budgeting issues, capital structure theory, payout policy, risk management and M&A. The course is intended to provide the basic skills in evaluating financing and investment decisions as well as their influence on corporate performance and value. We use the real cases of Russian and global companies. Students will have a chance to apply their knowledge in a group activity, estimating the economic efficiency of an investment project undertaken by the company of their choice.
Financial Economics (2 ECTS credits, 16 academic hours)
Dates: August 01 - 12
This course aims to build a bridge between the economic knowledge the students acquired previously to the principles of asset pricing in finance.
First part of the course, starting from knowledge about choices and utility in microeconomics, we will introduce how one can make optimal choices when we introduce financial markets. We will expend from microeconomics in two dimensions: first, we introduce the concept of dynamic programming and show how to optimize in dynamic models; second, with the knowledge (only basic needed) of probability theory, we show how to optimize in stochastic models.
Second part of the course, we introduce the concept of competitive equilibrium. We will show through simply examples how the prices of financial assets are decided when everyone tries to optimize his or her own utility. We will use simple concrete examples to illustrate relatively abstract concepts that are potentially used in later study or in the financial industry. Those abstract concepts include what is arbitrage; what is risk and uncertainty; what is relative and absolute risk aversion; what are Arrow securities; what are complete markets, etc.