The course provides the analytical tools useful to support decision making in firms and public authorities. These tools are applied for an ex ante evaluation of cost and benefit of strategies, projects or policies, and for an ex post evaluation of the effect of the decisions.
In the course will cover the following topics.
A. Multicriteria Analysis.
1. Knowledge and understanding: the student will know the theoretical and empirical fundamentals of multi criteria analysis.
2. Applying knowledge and understanding: the student will have competence on: the decomposition of an object, strategy or project (policy) into their characteristics; the carry on of a ranking analysis; how to identify the weights that individuals attribute to each characteristic; how to identify the preferred objects, strategies o projects.
3. Making judgments: the student will have the ability to analyze the basic elements shaping strategies or policies (in firms or in public authorities)
B. Efficiency analysis
1. Knowledge and understanding: the student will know and understand the basic theory of Data Envelopment Analysis (DEA).
2. Applying knowledge and understanding: the student will have competence on: how to carry on an efficiency analysis of decision making units (DMU) which employ many inputs and produce many outputs; how to employ DEA to identify the necessary efficiency gains to reduce waste of factor of productions; how to make a efficiency ranking of DMUs.
3. Making judgments: the student will have the ability to analyze the fundamentals elements determine DMU’s efficiency.
C. Discrete choice models and decision processes
1. Knowledge and understanding: the student will know the fundamentals of random utility theory and the econometric theory of bivariate and multinomial models.
2. Applying knowledge and understanding: the student will have competence on: how to analyze survey data (e.g. market analysis); how to measure the effects on individual decisions of the characteristics of the object and of the subject taking the decision; how to calculate the shadow price of each characteristics of the project/good/policy and the related willingness to pay; how to calculate the probability of events in sequential and nested decision processes.
3. Making judgments: the student will have the ability to evaluate the willingness to buy of new goods, and to identify the characteristics of the good which increase the willingness to pay and thus its market value; or the social attractiveness of public projects and policies.
In general in the course the student will also acquire:
Communications skills: although the course does not provide specific communication competences, group activities and classroom presentations contribute to build student competences to present report on specific economic phenomena.
Lifelong learning skills: the econometric and statistical tool learned in the course will favor the deepening in advanced studies (masters and PhD)