ECONOMICS 405 TOM LARSON

CSULA WINTER 2004

Office: STF 908

Office Hours: MW 2:30-4:30

Phone: (213) 343-2938/2930

email: tlarson@calstatela.edu

www.calstatela.edu/faculty/tlarson/tlarson.htm

 

ECONOMICS OF REGULATION and DEREGULATION

 

This course first examines the conditions under which economic regulation is efficient. The stringency of these conditions helps to explain the wave of deregulation of recent years, which is also examined. Next, the pros and cons for regulating public utilities are examined. The second half of the course features discussion of 4 to 5 case studies of regulated industries or government provided services. The emphasis of the course is on evaluating and describing current public policy and issues.

 

TEXT (s): Required:

William S. Peirce, Economics of the Energy Industries, Chapters 1, 3, 10,

11, 13, 15

Keeler, (on reserve)

READINGS: Required: (Draft)

Viscusi, Vernon and Harrington, Economics of Regulation and Antitrust, Chapters 1 & 2 (Intro to Regulation), Chapters 10, 11 (on reserve).

George Stigler, The Theory of Regulation (online).

Glaeser and Shleifer, The Rise of the Regulatory State (online)

Jostow, California

Recommended:

Kahn, Alfred E., The Economics of Regulation. This is on reserve.

 

READINGS AND COURSE OUTLINE

 

WEEK

Topic/Reading Assignment

 

 

1.

The Rational of Regulation.

 

Viscusi, Chapter 1

 

Stigler

 

Glaeser and Shleifer

2.

Theory of Economic Regulation & the Deregulation Revolution.

 

Kahn, pp. xv-xxxvii; Viscusi, Chapter 2 and pages 301-7 (Chapter 10)

3.

Theory of Economic Regulation (continued).

 

Viscusi, Chapters 10, 11.

4.

Criticisms of Regulation and Issues under Regulation

 

Kahn, Chapter 2, Review Stigler

5.

Economic Regulation of Energy, Regulation of Natural Gas

 

Peirce, Chapters 1, 3, 10

6.

MIDTERM

 

The Electric Power Industry, Peirce, C 11,

7.

Electric Power Crisis in California, Jostow

8.

Telecommuncations under regulation and deregulation

 

Irwin & McConnaughey, Crandall and Hausman

9.

Economics of Urban and Mass Transit

 

Lecture notes and Keeler.

10.

Economics of Airline Regulation

 

William Shepard

 


 

Class Web Site: http://webct.calstatela.edu:8900. At this page you can create your WebCT account. On your first visit, you will need to locate the course listing so it can be added to your WebCT account. Go to See courses. From here, go to the College of Business and Economics page and then select Econ405tl from the course list. Once at Econ405, click on the key icon and then self-register for the course. You will need internet access and a web browser (preferably Netscape or Internet Explorer).

The web site contains a variety of features, including course syllabus, course notes, discussion topics, articles, etc. You should familiarize yourself with the website as soon as possible.

 

There will be a midterm (30% of total grade), final (30%), term paper (20%), and 4 homework assignments (15%). In addition credit will be given for course participation (5%), which will largely consist of attendance and discussion (either in class or via the course website).

Homework: homework is due one week from when it is assigned. Almost every week an issue in regulation/deregulation will be addressed in the homework. The homework will consist of writing an essay and doing some research on the topic.

Midterm: Several essay questions.

Final: in class on March 17, 7:30-10:00PM.

 

Grades: 90-100: A

89-90: B

65-79: C

55-64: D