Microeconomics of infrastructure|Infrastructure and the macro economy|Infrastructure appraisal|Re

You will be introduced to the fundamental microeconomic and macroeconomic principles of infrastructure economics. Microeconomic principles will be introduced...

Infrastructure: Economic Principles and Policy (BCPM0018)

You will be introduced to the fundamental microeconomic and macroeconomic principles of infrastructure economics. Microeconomic principles will be introduced alongside an analysis of market failures relevant to infrastructure, including natural monopoly, externalities, public goods, and agglomeration economies. Relevant macroeconomic principles will be introduced and applied to the analysis of interactions between infrastructure and economic growth in the long-run and short-run. Once basic economic principles have been covered, economic policy issues will be explored, focusing specifically on infrastructure project appraisal and regulation.

Aims:

The aim of this module is to enable you to understand both the microeconomic and the macroeconomic drivers and consequences of investment in infrastructure projects. 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.

Learning Objectives:

Understand infrastructure as an economic concept.
	Learn the fundamental economic principles that drive and constrain infrastructure investment.
	Explore the impacts of specific types of market failure on infrastructure projects.
	Understand infrastructure from a macroeconomic perspective, especially the conceptual and empirical links between infrastructure and economic growth as well as development.
	Develop insights into the context and practice of the economic appraisal of infrastructure investment projects, as well as policies affecting infrastructure investment.