Economics of European Union

Pompeo Della Posta, Lorenzo Corsini, Irene Brunetti, Federico Pierobon
Semester Fall

The course will deliver a short history of the process of European integration and some basic elements on the institutions of the European Union. We will discuss the theoretical justifications for free trade in Europe. Great attention will be given to the European Economic and Monetary Union, the European labour market and the European industrial policies.
Course Outline
1. Course overview: Historical overview of the economic and monetary integration process in Western Europe: from the end of World War II to the recent Eastern enlargement. 2 The theory of trade and EU. Inter-industry trade: Smith, Ricardo and the principle of absolute and comparative advantage; the neoclassical interpretation and the Hecksher-Ohlin model. Intra-industry trade and the process of European integration: the role played by increasing returns to scale and imperfect competition. 3.The Monetary Union: optimal currency area, European Central Bank and the European Monetary policy. 4. The European labour market: labour mobility in Europe, labour protection and passive and active policies for labour. 5. European industrial policy: Industrial policy for growth, industrial policy for regional development and tegulation policy and competition at the European level. Textbooks  Baldiwin and Wyplosz, “The Economics of European Integration”, 5th edition Optional Reading  Senior Nello, Susan M. (2011), The European Union: Economics, Policies, and History
Prerequisites Students should be familiar to basic concepts of microeconomics and macroeconomics

Keywords European Union, International Economics, Monetary Policies, Fiscal Policies, Integration

Teaching Frontal lectures and seminar

Final valutation Written examination

Course website Other notes Attendance to the lectures is strongly encouraged