Principles of Agricultural, Resource and Community Development Economics

1
Principles of Agricultural, Resource and
Community Development Economics

• Course Introduction

2
Course Overview
3
What is economics?

• The allocation of scarce resources among
  alternative desirable ends
• For this and future generations
• What does allocation mean?

4
Why study economics?

• What issues do you care about?
• Job stability
• Community stability
• Climate stability
• Food supply
• Ozone depletion
• Pollution
• Ecosystem degradation
• Economics drives many of the decisions that
  affect these issues

5
Neoclassical vs. ecological economics
6
Neoclassical economics

• built on mathematical framework based on a
  several powerful assumptions, e.g.
• Homo economicus
• Perfect competition
• Pareto optimality
• Economy can and should grow for ever
• Presented as objective science
• Elegant, simple, and wrong

7
Ecological economics

• Transdisciplinary, no single methodology
• Built on assumption that economic system is
  subsystem of global ecosystem
• Physical laws of thermodynamics drive economic
  system
• Ecological sustainability, social justice,
  efficient allocation
• Not elegant or simple we live in a highly
  complex world
• Better to be vaguely right than precisely wrong

8
Approach of this course

• Enough exposure to neoclassical economics to be
  able to handle more advanced courses
• Critique of neoclassical economics
• Presentation of ecological economics as an
  alternative with solid foundation in both science
  and ethics

9
Course Objectives

• Answer the three basic questions that arise from
  this definition of economics, particularly as
  they pertain to agricultural, resource and
  community development economics
• What are the desirable ends towards which society
  should allocate its scarce resources?
• What are these scarce resources, and what are
  their characteristics relevant to allocation? 
• Based on the nature of the scarce resources and
  human nature, what allocative mechanisms are best
  for achieving these desired ends?

10
Course Objectives (cont.)

• Critically examine how conventional economists
  think
• Learn how ecological economists think, and how
  they address some of the shortcomings of
  conventional economics
• Understand how markets can in theory utilize
  decentralized information and personal choice to
  balance supply and demand, possibility with
  desirability
• Recognize the explicit and implicit assumptions
  of conventional economic analysis required for
  (3), and assess their validity. 
• Understand policies related to agriculture,
  resource management, and community development

11
Administrative Stuff
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Course Resources

• WebCT will be used to
• Post the syllabus and important announcements
• Post required and recommended readings
• Post and receive assignments that have no graphs
• Facilitate discussions between students
• Keep track of grades
• Communicate with all of you
• Receive feedback on the course
• http//www.uvm.edu/jfarley/61/cdae61syllabus.html

13
Contact Info

• Instructor Joshua Farley205 H Morrill Hall
  OR105 C, 590 Main Street656-2943joshua.farley_at_u
  vm.eduOffice Hrs. Morrill Hall, MWF,
  1030-1200 or by appointment
• TA Kate RuscioOffice hours TBAkruscio_at_uvm.edu

14
Course Resources (cont.)

• WebCT overview
• http//webct.uvm.edu
• Log-in like you do with e-mail
• Syllabus
• Calendar
• Assignments
• Discussion board

15
Homework Review Sessions

• 1 hour evening sessions, time TBA
• Students attending grade their own homework, and
  get bonus points.

16
Course texts

• Ecological Economics Principles and
  Applications, by Herman Daly and Joshua Farley,
  Island Press, 2003 available from Tina Haskins,
  205 Morrill Hall. 30 cash or check, Ill buy
  back for 20
• Selections from Principles of Microeconomics, by
  Robert Frank and Ben Bernanke, 2nd Edition, 2003
• Additional readings will be posted on WebCT
  and/or available on Bailey Howe reserve

17
Course Requirements

• Attending lecture is necessary
• Participation 10 of grade, but students who
  fail to attend regularly are most likely to fail
  the class
• Attendance sheets
• Readings must be done carefully.
• Do exercises when included in chapters
• Homework assignments intended to help you learn
  material, reflect on material, and prepare for
  exams
• Grading
• Homework assignments 30
• Midterm 15
• Final 25
• Course projects 20
• Participation 10
• Bonus points

18
Assignments

• Assignments with no graphs will be due via WebCT.
  These must be submitted as MS Word or RTF.
• Alternatively, you can turn in the assignment to
  me or Kate immediately before or after class. We
  will check it off on a spread sheet.
• Assignments must be handed in on time. If there
  is a valid reason you cannot turn an assignment
  in on time, let me know ahead of time by e-mail.
• There will be a two day buffer on assignments
  submitted electronically to allow for problems
  with WebCT

19
Field Project

• Help VPIRG plan and initiate obesity campaign
• 2nd possibility Sustainable forestry management
  in the Northern Forest

20
Class policies

• All assignments must be done on time
• No make up exams
• Exams can be taken early with a valid excuse
• No disturbing others in class
• Sleep at home, not in class
• You can discuss assignments with each other and
  work on them together if it helps you learn the
  material, but simply copying someone elses work
  wont help you.
• Any questions about grades must be submitted in
  writing within 48 hours.
• Kate and I will try to get grades back to you as
  quickly as possible, with comments.