Principles of Agricultural, Principles of Agricultural, Resource and Community Resource and Community Development EconomicsDevelopment Economics

Course IntroductionCourse Introduction

Course OverviewCourse Overview

What is economics?What is economics?

• The allocation of scarce resources among alternative desirable ends– For this and future generations

• What does ‘allocation’ mean?

• How do we decide how many resources are available to be allocated?

• How do we decide on distribution?

Why study economics?Why study economics?• What issues do you care about?

– Job stability, unemployment– Community issues: Poverty, Community

stability– Government issues: Taxes and how we spend

them– Environmental issues: Climate stability, ozone

depletion, pollution, ecosystem degradation– Food supply and distribution

• Economics drives many of the decisions that affect these issues

Neoclassical vs. ecological Neoclassical vs. ecological economicseconomics

Neoclassical economicsNeoclassical economics

• built on mathematical framework based on a several powerful assumptions, e.g.– Homo economicus– Perfect competition– Pareto optimality – Economy can and should grow for ever

• Presented as objective science

• Elegant, simple, and wrong

Ecological economicsEcological economics

• Transdisciplinary, no single methodology• Built on assumption that economic system is

subsystem of global ecosystem• Physical laws of thermodynamics drive

economic system• Ecological sustainability, just distribution,

efficient allocation• Not elegant or simple: we live in a highly

complex world• Better to be vaguely right than precisely wrong

Approach of this courseApproach of this course

• Enough exposure to neoclassical economics to be able to handle more advanced courses

• Critique of neoclassical economics

• Presentation of ecological economics as an alternative with solid foundation in both science and ethics

Course ObjectivesCourse Objectives

• Answer the three basic questions that arise from this definition of economics, particularly as they pertain to agricultural, resource and community development economics:– What are the desirable ends towards which society

should allocate its scarce resources?– What are these scarce resources, and what are their

characteristics relevant to allocation?  – Based on the nature of the scarce resources and

human nature, what allocative mechanisms are best for achieving these desired ends?

Course Objectives (cont.)Course Objectives (cont.)

• Critically examine how conventional economists think• Learn how ecological economists think, and how they

address some of the shortcomings of conventional economics;

• Understand how markets can in theory utilize decentralized information and personal choice to balance supply and demand, possibility with desirability

• Recognize the explicit and implicit assumptions of conventional economic analysis required for (3), and assess their validity. 

• Understand policies related to agriculture, resource management, and community development

My Teaching Philosophy vs. My Teaching Philosophy vs. 150 Students150 Students

• My goal is not to teach you facts, but to teach you how to think: analysis, synthesis and communication

• I don't know all the answers, and no professor does (nor does the boss in any job you'll ever have)– In an evolving system, knowledge must also

evolve. Much of what I teach is wrong now, or will be in the future.

• Students should not be here to absorb and regurgitate, but rather to cogitate and contribute

Teaching PhilosophyTeaching Philosophy

Administrative StuffAdministrative Stuff

Contact InfoContact Info

• Instructor: Joshua Farley205 H Morrill Hall 656-2989ONLY USE WEB-CT E-MAIL

• If you must send an e-mail to my regular inbox, Subject line must begin with CDAE 61

• Office Hrs.: Morrill Hall, MW, 10:00-12:00 or by appointment

TAsTAs• Marta Ascherio• Ben Crockett• Tristan Hansell• Kevin Stapleton• Lance Stratton

• You are assigned to TAs for grading, but can go to any review session or office hours

• Office hours and review session times TBA

Course ResourcesCourse Resources

• WebCT will be used to:– Post the syllabus and important announcements– Post required and recommended readings – Facilitate discussions between students– Keep track of grades – Communicate with all of you – Receive feedback on the course

Course Resources (cont.)Course Resources (cont.)

• WebCT overview– http://webct.uvm.edu– Log-in like you do with e-mail– Syllabus– Calendar– Assignments– Discussion board

Homework Review SessionsHomework Review Sessions

• 1 hour TA sessions, time TBA

• Students attending grade their own homework, and get bonus points.

• You can ask TAs questions about course content. When they don't know the answer, they will consult me then get back to you.

Content Review SessionsContent Review Sessions

• Kevin Stapleton, time TBA• Either Kevin or I will give review sessions

for exams.

Course textsCourse texts

• REQUIRED: Ecological Economics: Principles and Applications, by Herman Daly and Joshua Farley, Island Press, 2003 (D&F in Syllabus) available from Tina Haskins, 205 Morrill Hall. $35 cash or check, I’ll buy back for $25

• REQUIRED: Selections from Principles of Microeconomics, by Robert Frank and Ben Bernanke, 2nd Edition, 2003 (F&B in syllabus)

• Additional readings will be posted on WebCT and/or available on Bailey Howe reserve

Course RequirementsCourse Requirements

• Attending lecture is necessary– Participation = 10% of grade, but students who fail to

attend regularly are most likely to fail the class– Incentive system for attendance (besides just passing

the course)?– Attendance sheets?

• Readings must be done carefully.– Do exercises when included in chapters

• Homework assignments intended to help you learn material, reflect on material, and prepare for exams

Course RequirementsCourse Requirements

• Two midterm exams• One comprehensive final• One make-up exam• The more an exam makes you think, the harder

it is to grade. The stupider an exam is, the easier it is to grade. There are 150 students in this class.

GradingGrading

• Homework assignments 30%

• Midterms 17.5% each

• Final 25%

• Participation 10%

• Bonus points

AssignmentsAssignments

• Assignments must be turned in to TAs at start of class• Assignments must be handed in on time. If there is a

valid reason you cannot turn an assignment in on time, let your TA know ahead of time by e-mail.

• Count for 300 points, but likely to add up to well over 300, e.g. You get some freebies.

• Biggest reason for doing poorly in this class is failure to complete assignments.

• Collaboration OK, copying is not.

Class policiesClass policies

• All assignments must be done on time• One Makeup exam

• No disturbing others in class• Sleep at home, not in class• You can discuss assignments with each other and work

on them together if it helps you learn the material, but simply copying someone else’s work won’t help you.

• Any questions about grades must be submitted in writing within 48 hours.

• TAs and I will try to get grades back to you as quickly as possible, with comments.