This course covers the principles of economic and fiscal policy and looks at economic policy in relation to the digital economy. Digitization is fundamentally changing the way business is done, and as a result, the way economic policy addresses developments in digital markets. Insofar as digital markets affect the global economy, also the way digitization affects the economy as a whole. There are policy implications of digitization that will be considered in this course, including: frictions with the traditional model of production (e.g., automation, Industry 4.0), resulting friction with the labor market and corollary social effects, cybersecurity in public and private spheres, digital currency, and digital government.

After completing this course, students will have an understanding of the basic interplay between markets and governments. They will understand the strengths and weaknesses of markets: What do markets provide (efficiently) that governments do not? What do markets fail to provide that the government must? What tools does the government have to affect markets, or correct for them? After the course, students will be able to answer these questions generally and thematically.  In the second part of the course, questions about the implications the rapid evolution of information technology poses to markets and to governments will be discussed. At the end of the course students will have a general understanding of the multi-level and multi-sector impact of digitization, and will be able to critically reflect on and discuss the topic at a general level.

Attendance is mandatory, with no more than two unexcused absences allowed. Unexcused absences will result in a lower participation grade. Students who are absent are responsible for all the material covered during lecture on the day of the absence, as well as for turning in any due assignments and a summary of the readings.

Lecture, readings, video, analytical exercises of course topics.
Course instruction in English. Textbook readings (Bofinger 2015) in German; Bofinger slides will be presented in English, as well as the readings for the second part of the course.

i) Participation (15%)

ii) Assignments (25%)

iii) Mid-term exam (30%)

iv) Group Project (30%)

Foundations to Macroeconomics & basic understanding of the free market mechanism.

After the  registration period, students from the waiting list, who don't yet have a valid registration, will be assigned to available places in the specific courses. This allotment is not based on a first-come first-served principle.  Rather, progress in the studies will be the decisive criterion. Places of students who don't show up at the first lesson will be distributed among not registered students based on their position on the waiting list.

Microeconomics background is an advantage.

By appointment,  mreyeroa@wu.ac.at

Tutor: Robert Scharf, rscharf@wu.ac.at