AI1128 Economics of the Built Environment 7.5 credits

Samhällsbyggnadsekonomi

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Course information

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

Course Disposition

Basic knowledge is presented in lectures and exercises. A term paper analyzing a selected real estate company is written.

Literature and preparations

Specific prerequisites *

No information inserted

Recommended prerequisites

No information inserted

Equipment

Allowed during the exam: a calculator and a Swedish dictionary.

Literature

- Perloff, J. M. (2017). Microeconomics: Theory and applications with calculus (4th ed.).

- Compendium of Articles (pdf format)

Changes might to be made. In case of changes being made, these will be

announced at least four weeks before the course starts.


- Perloff, J. M. (2017). Microeconomics: Theory and applications with calculus (4th 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

Grading scale *

A, B, C, D, E, FX, F

Examination *

  • SEMN - Seminars, 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.

Opportunity to complete the requirements via supplementary examination

No information inserted

Opportunity to raise an approved grade via renewed examination

No information inserted

Examiner

Fredrik Armerin

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web AI1128

Offered by

ABE/Building and Real Estate Economics

Main field of study *

Technology

Education cycle *

First cycle

Add-on studies

No information inserted

Contact

fredrik.armerin@abe.kth.se

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.