Economics of the Built Environment
Samhällsbyggnadsekonomi

VFTF35, 7.5 credits, G2 (First Cycle)

Valid for: 2025/26
Faculty: Faculty of Engineering LTH
Decided by: PLED L
Date of Decision: 2025-04-11
Effective: 2025-05-05

General Information

Main field: Technology Depth of study relative to the degree requirements: First cycle, in-depth level of the course cannot be classified
Mandatory for: L3
Language of instruction: The course will be given in Swedish

Aim

The course aims to give the student an understanding of, and basic skills in analyzing, the economy at both micro and macro level with special emphasis on the interplay between market, politics, bureaucracy and law.

Learning outcomes

Knowledge and understanding
For a passing grade the student must

• understand the principles behind how a market works
• understand the background to market failures and their effects
• understand the background to policy failures and their effects
• understand the interplay between legal rules and economic outcomes
• understand why certain macroeconomic measures are taken, such as the Riksbank changing the interest rate
• understand the basics behind cost benefit analysis

Competences and skills
For a passing grade the student must

• be able to analyze the effects on price and produced quantities of various changes in a market
• be able to account for how economic instruments can be used to correct for market failures
• be able to account for how policy failures arise and affect society and how they can be prevented
• be able to analyze basic issues wihtin the field of law and economics
• be able to assess the general effects of how various macroeconomic changes affect the construction and real estate market
• be able to account for the basics behind cost benefit analysis

Judgement and approach
For a passing grade the student must

• understand the market economy solutions and the public solutions to resource use issues in society and the limitations of these solutions
• analyze and critically examine assumptions made in cost benefit analysis
• be able to search for and evaluate literature for further self-study

Contents

In the course, we study the driving forces behind and the result of people's choices in society. 

• Microeconomics: price formation in competitive markets and markets with monopoly elements, different regulatory systems and their effects, with in-depth study of the housing market and sustainable community building. Fundamentals of public choice and law & economics for understanding the interaction of economics with politics, bureaucracy and law
• Macroeconomics with emphasis on cycles in the construction and real estate market and how these are related to general economic fluctuations and economic policy.
• Cost benefit analysis of infrastructure projects with emphasis on the basics of how cost / benefit calculations are carried out, which input values are important and what distinguishes socio-economic calculations from business economics.

The teaching consists of lectures and exercises.

Examination details

Grading scale: TH - (U, 3, 4, 5) - (Fail, Three, Four, Five)
Assessment: Written examination.

The examiner, in consultation with Disability Support Services, may deviate from the regular form of examination in order to provide a permanently disabled student with a form of examination equivalent to that of a student without a disability.

Modules
Code: 0121. Name: Economics of the Built Environment.
Credits: 7.5. Grading scale: TH - (U, 3, 4, 5).

Admission

The number of participants is limited to: No
Kursen överlappar följande kurser: VFTF01

Reading list

• Frank, Robert H: Microeconomics and Behavior. McGraw-Hill Higher Education, 2020, ISBN: 9781260575644. 10 ed.
• Complementary materials provided by the department.

Contact

Course coordinator: Docent Åsa Hansson, asa.hansson@lth.lu.se
Teacher: Universitetslektor Ingemar Bengtsson, ingemar.bengtsson@lth.lu.se
Course homepage: www.lantm.lth.se