AI1128 Economics of the Built Environment 7.5 credits
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Application
For course offering
Spring 2025 Start 14 Jan 2025 programme students
Application code
60019
Content and learning outcomes
Course contents
The course covers the following areas:
1. Microeconomics: price formation on competitive markets and monopoly markets, different regulations and their effects with a special focus on the housing market and a sustainable society. The basis of contract theory with applications to procurement contracts.
2. Macroeconomics with a focus on property cycles and how these are related to the general business cycle and macroeconomic policies.
3. Cost calculations, investment calculations and how these can be used for analysis of projects and valuation of properties.
4. The core of an annual report, e.g., balance sheet and income statement.
Intended learning outcomes
After the course the student should be able to:
- present the principles behind how a market works
- analyze the effects from various changes on a market on prices and quantities produced
- understand the background of market failures and their implications
- explain how economic policy instruments may be used to achieve a sustainable society
- 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
- explain the basic fundamentals behind cost- / benefit-analysis
- interpret the annual financial statements
Literature and preparations
Specific prerequisites
No prerequisites
Recommended prerequisites
Equipment
Allowed during the exam: a calculator and a Swedish dictionary.
Literature
- Perloff, J. M. (2021). Microeconomics: Theory and applications with calculus (5th ed.).
Harlow, Essex: Pearson Education Limited.
- Compendium of Articles (pdf format)
Some minor changes might to be made. In case of changes being made, these will be
announced at least four weeks before the course starts.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- TENB - Written exam, 7.5 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.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- 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.