MyAV·¶

This module covers the most important topics in economic analysis of infrastructure. Based on an overview of relevant concepts and models in microeconomics, the module explores the markets for infrastructure investment and assets, including relevant market failures and public policy interventions. The module also introduces economic analysis of infrastructure procurement and regulation, and how they affect the cost, availability and quality of infrastructure. Finally, the identification and measurement of the economic impact of infrastructure is covered. Cost-benefit analysis is introduced as a way to measure the impact of an individual infrastructure investment project on society. At the aggregate level, short- and long-run macroeconomic models of the link between infrastructure investment and economic growth and development are presented.

Aims:

The aim of this module is to enable you to apply both microeconomic and macroeconomic analysis to infrastructure investment and assets. You will be introduced to the fundamental economic principles underlying infrastructure provision, starting from the relevant microeconomic principles, exploring market failures and policy responses to them. The module will also introduce some macroeconomic insights to explore feedback loops between infrastructure investment on the one hand and economic growth and development on the other.Ìý

Learning Objectives:

•ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Understand infrastructure as an economic concept.

•ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Explore the impacts of specific types of market failure on infrastructure provision and public policy responses to mitigate them.

•ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Understand the main economic issues and trade-offs in infrastructure procurement and regulation.

Ìý•ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Analyse infrastructure from a macroeconomic perspective, especially the conceptual and empirical links between infrastructure and economic growth as well as development.