Computational and Behavioral Economics for Policy Analysis

COMBEX: Computational and Behavioral Economics for Policy Analysis is an intended joint follow-up master's program of four European universities (University of Bamberg in Germany - coordinating institution, the University Jaume I in Castellón, Spain, the Polytechnic University of Marche in Ancona, Italy, and the Masaryk University). COMBEX aims to provide high-quality education to students by integrating different approaches to policy design and evaluation. The goal is to equip students with the necessary skills and knowledge to analyze economic systems using advanced computational tools and behavioural models. The study program promotes internationalization, research cooperation, and the exchange of knowledge among the universities involved.

The rationale for the proposed joint master's study program stems from the fact that recent advances in economic research, as well as actions taken by policymakers following the recent financial crisis, COVID-19 pandemic, and current energy crisis, clearly demonstrate that understanding modern economic systems requires consideration of complex interactions among economic agents. This means that economic policy design and implementation would benefit greatly from professionals with a solid academic background in computational and behavioral approaches to economics. Unfortunately, most master's programs in European universities, as well as worldwide, offer a curriculum that addresses economic policy issues based on conventional theories that do not sufficiently account for the role of heterogeneity and complex interactions among economic agents. These theories, based on the "rational expectations" paradigm, while valuable in several respects, often provide only a limited perspective on many real economic phenomena while abstracting from more complex and realistic aspects of economic systems. Because the focus of standard economics education is on developing analytical skills to "solve" these types of economic models, this leads to significant methodological path dependence and a large gap in professional education. This can limit the ability of public agencies to understand, evaluate, and appropriately solve important economic problems.

In contrast, the economic theories and methods we aim to teach in our master's program understand the real world as a complex system. A complex system consists of heterogeneous micro-units with cognitive and/or informational constraints that typically interact through decentralized processes or markets. In this setting, knowledge about the behavior of a single micro-unit, even if perfect, is not sufficient to explain the behavior of the system as a whole. Instead, the collective behavior results from the dispersed interaction of a large number of heterogeneous actors. Because this process is uncoordinated, there is no guarantee that the resulting outcomes will be optimal or efficient at the aggregate level, or that the evolution of the system as a whole will be stable.

The track at MUNI within the COMBEX program aims to provide students with an in-depth understanding of the complex interaction between health, economics and policy making/evaluation. The courses include are Introduction to Health Economics, Field Experiments for Public Policy Making, Applied Research in Public Policy Making, Behavioral Economics, and Health Policy Planning and Evaluation. Together, these courses provide students with a unique set of skills and knowledge that are highly relevant to the design and evaluation of health policies and prepare them for careers in the public or private sector in the field of health economics and policy.

COMBEX program will provide students with algorithmic and computational thinking and related skills along with solid economic competencies to analyze complex problems in a variety of contexts, from economic theory to management, financial markets, marketing, and industrial and organizational processes.

After successfully completing his/her studies the graduate is able to:

• Understand the theoretical foundations, standard concepts, theories, and methods of micro- and macroeconomics and computational and behavioral economics models, enabling them to analyze complex economic systems and policy issues critically.
• Apply advanced mathematical, statistical, and econometric methods for economic research and apply recent advances in economic research to policy design and implementation.
• Demonstrate the ability to select, adapt, and apply econometric methods in a problem-oriented manner to evaluate policies, design effective interventions, or conduct empirical research.
• Use computational tools and techniques like agent-based modeling, data analytics, and experimental methods to investigate and simulate economic behavior or policy outcomes.
• Utilize algorithmic and computational thinking and related skills to analyze complex problems in various contexts, from economic theory to management, financial markets, marketing, and industrial and organizational processes.
• Develop a holistic understanding of the interconnectedness of economic, social, and behavioral factors in policy-making processes, including identifying key policy challenges, designing evidence-based interventions, and evaluating their effectiveness
• Employ strong oral and written communication skills to communicate economic concepts and policy recommendations to relevant stakeholders effectively.

After completing the COMBEX master's follow-up program, graduates will have the skills and knowledge to pursue various career paths. They could work as economic policy analysts in government agencies, international organizations, or non-governmental organizations, using their knowledge of computational and behavioral approaches to policy design and evaluation to provide evidence-based recommendations for economic policy. Graduates could also work as data scientists in various industries, analyzing complex data sets using their skills in algorithmic and computational thinking to provide insights for decision-making. They could work as researchers in academic or research institutions, conducting research on complex economic and financial systems using behavioral, experimental, and computational tools. Graduates could also work as consultants in consulting firms, providing advice and solutions to businesses and organizations on complex economic and financial issues using their expertise in economic competencies and computational tools. Additionally, they could work as financial analysts in financial institutions, analyzing financial markets and providing insights for investment decisions using their knowledge of computational and behavioral approaches; or as business analysts in various industries, analyzing organizational processes and providing insights for improving efficiency and effectiveness using their knowledge of economic competencies and computational tools. By providing a solid academic background in these areas, the COMBEX study program aims to equip graduates with the necessary skills and knowledge to analyze economic systems using advanced computational tools and behavioral models, thus promoting internationalization, research cooperation, and the exchange of knowledge among the universities involved.

The last semester of the COMBEX study program semester is designed to give students the opportunity to apply the skills and knowledge they have gained throughout the program to a real-world project or problem. Practical training – as internships - is not an obligatory part of the study program, but international internships are strongly encouraged. The last semester is reserved for the preparation and completion of the diploma thesis.

Students have the opportunity to conduct original research under the guidance of a faculty advisor at any of the four universities. The thesis will be based on a topic of the student's choice within the scope of the program and will require them to demonstrate their ability to conduct independent research and present their findings in a clear and compelling way.

Alternatively, if a student chooses to pursue an internship, they will have the opportunity to gain hands-on experience working in a real-world setting. The internship can be at one of the program's partner and associated partner institutions or at another institution of the student's choice. The internship is not a mandatory part of the curriculum, but it is highly recommended as it provides students with the opportunity to network, gain practical experience, and build their professional portfolios.

The diploma thesis is a major component of the COMBEX master's follow-up study program, and is designed to give students an opportunity to apply the knowledge and skills they have acquired throughout the program to an original research project. The standard scope of a master's thesis in the program ranges from 60 to 75 pages, including footnotes, cover sheet, content, index, list of literature, and annotations. The thesis is written in English and is jointly supervised by two supervisors from the universities involved in the study program.

Students are expected to work with already published texts and data that are accessible for secondary analysis. They are required to demonstrate the ability to work critically with specialized texts, process the concepts and theories discovered there, and find relevant answers to the given research question. The thesis should be an original contribution to the field of computational and behavioral economics, and should demonstrate the student's ability to carry out independent research using appropriate research methods and techniques.

The thesis should be structured in a clear and logical manner, and should include an introduction, a literature review, a clear statement of the research question or hypothesis, a description of the research methodology, an analysis of the results, and a conclusion. In addition, students should provide a critical reflection on their research process, including any limitations or challenges encountered during the research, and suggestions for future research in the area. The guidelines for the elaboration of the thesis are regulated by the ESF Directive No. 9/2017 on the creation, submission, publication and evaluation of the final (Bachelor and Diploma) theses.

Graduates may choose to continue their studies in related doctoral programs or pursue further professional development in areas such as data analysis, economic modeling, or policy implementation. The program's emphasis on advanced computational tools and behavioral models also provides graduates with a strong foundation for pursuing careers in fields such as artificial intelligence, machine learning, or data science.