The first two components coincide with those for Econometrics.
In the second semester, students are introduced to a variety of revealed preference methods of valuation including: hedonic pricing; travel cost methods; and the household production function approach. Students are also taught stated preference methods of benefits determination including contingent valuation and choice experiments. The teaching includes both familiarising students with the microeconomic foundations for the alternative techniques and with the empirical implementation of the techniques using real-world data and appropriate parametric and non-parametric statistical techniques. Students are made aware of the methodological controversies surrounding the use of these techniques including the discrepancy between Willingness to Pay and Willingness to Accept; as well as the debate about existence values. The final lectures deal with the valuation of changes in the risk of mortality and morbidity impacts.
Method of assessment:
A 1-hour multiple-choice test in January (15%), computer exercises or essay (25%) and a 3-hour written examination (60%)