AI1107 Economics 7.5 credits

The course covers the following areas:

1. Cost calculations, investment calculations and how these can be used for analysis of projects and valuation of properties.

2. Microeconomics: price formation on competitive markets and monopoly markets, different regulations and their effects with a special focus on the housing market.

3. Macroeconomics with a focus on property cycles and how these are related to the general business cycle and macroeconomic policies.

After the course the student should be able to:

• make simple cost and investment calculations
• critically analyze assumptions in calculations mentioned above
• analyze the effects on prices and quantities produced of various changes on a market
• critically evaluate arguments for and against various regulations on a market
• understand why certain macroeconomic policies are introduced, e.g. when the central bank changes the interest rate
• evaluate the general effects of different macroeconomic changes on the real estate and construction market
• understand the mechanisms that can lead to changes in construcion volumes and property prices.

Introduction to the Planning and Building Process (AI1137) or equivalent course.

1. Compendium "Samhällsekonomi"

2. Axelsson, R, mfl "Mikroekonomi", or equivalent

Minor changes regarding course litterature will be reported at the Course hompage four weeks prior to course start.

If the course is discontinued, students may request to be examined during the following two academic years.

• PROA - Project, 1.5 credits, grading scale: P, F
• TENA - Examination, 6.0 credits, grading scale: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Allowed during the exam: minicalculator and Swedish-XXX dictionary.

Approved written exam and approved coursework. A good term paper and active participation in the exercises give bonus points that together with the number of points in the written exam determines the grade in the course.

Hans Lind

• All members of a group are responsible for the group's work.
• In any assessment, every student shall honestly disclose any help received and sources used.
• In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.