Understanding knowledge: Understanding the Fundamental Principles of Economic Systems: Consumer and Producer Behavior, Competitive and Non competitive Markets, Fundamental Principles of Financial Mathematics and Appraisal. Learn how to estimate real estate assets.
Applied understanding skills: To be able to correctly set up a valuation procedure by identifying the most appropriate economic aspect and assessment procedure. Carry out the correct collection of market data and perform economic, statistical and financial calculations.
Autonomy of judgment:To be able to apply the acquired knowledge to solve simple valuation of the real estate market value and the construction cost of buildings.
Communication skills: to be able to illustrate, both in written and oral form, the evaluations carried out and to support its correctness on a logical and factual level.
Learning ability: To know how to collect information from direct and indirect sources needed to carry out original economic evaluations on real property and rights.

Mathematics and descriptive statistics.

The course provides the basics of economics and mathematical finance for understanding economic phenomena, with particular reference to the theoretical and operational tools for the appraisal of real estates within the private and public decision-making processes.

The course is organized in two parts.
Part A - Economics
1 Economics
1.1. Economic goods
1.2. Elements of consumer theory
1.3. Elements of production theory
1.4. The equilibrium in competitive and non-competitive markets
1.5 The macroeconomic equilibrium
1.6 Elements of National Accounts
2 Elements financial mathematics
Part B - Appraisal
1 Appraisal theory
1.1. The valuation report
1.2. Appraisal methods
1.3 The present, potential and normal value
1.4. Economic profiles of goods
1.5 The income approach
1.6 The market comparison approach
1.7 Appraisal and statistics
2 The valuation of real estate
2.1. The real estate market
2.2. The evaluation of land
2.3. The valuation of buildings
2.4. The evaluation of the construction cost
2.5. The evaluation of the urban land
2.6. The appraisal of industrial property
3 The evaluation of rights on real estate
3.1. Expropriation for public utility and compensation
3.2. Easements and compensation
3.3. The usufruct, use, surface
4 The real estate register
4.1. The real estate taxation
4.2. The cadastre

Exercises and teaching aid on http://moodle2.units.it
Mankiw n. Gregory (2008) Proncipi di Economia, Zanichelli, Bologna.
Messori F. (1994) Istituzioni di Economia, CLEUB, Bologna.
Amodeo A. Rosato P. (2014) Matematica Finanziaria per l’Ingegneria civile e per l’Architettura, EUT, Trieste.
Michieli I. (2002) Trattato di Estimo, Edagricole, Bologna.
Simonotti M. (2012) Metodi di Stima Immobiliare, Dario Flacovio Editore, Palermo. Materiale vario distribuito a lezione

PART A - PRINCIPLES OF ECONOMICS AND FINANCIAL MATHEMATICS Consumption and demand theory Basic concepts: need, good utility The Circular Economic System: Production / Consumption The Total Utility and Marginal Utility Functions Marginal utility and consumer equilibrium The two goods utility function The consumer equilibrium and income constraints The consumer's equilibrium and price changes. The price / consumption curve and the demand function The aggregate demand function The elasticity of demand for the price of the good, the income and the price of the other goods Theory of production and supply Basic concepts: company, business, entrepreneur Production and production factors Production factors: fixed and variable, simple utility and repeated utility Production costs: fixed and variable, private and social, accounting cost and opportunity cost The total, medium and marginal production function Optimal level of a production factor The optimal combination of production factors The two-factor production function and the marginal technical rate of substitution The total, average and marginal cost functions The supply function in the medium and long run The optimal combination of production levels (more products) The aggregate supply function and its price elasticity Competitive and non-competitive markets theory The main forms of the market: determinants The pure competition market The monopoly market The monopsony market The bilateral monopoly The oligopoly market The oligopoly genesis The market for monopolistic competition Macroeconomics The economic system enlarged to the role of the state and the financial system Gross domestic product and gross national product Aggregate Supply and Aggregate Demand Inflation Elements of financial mathematics Simple interest and compound interest Annuity: constant and variable, anticipated and postponed, limited and unlimited The annuity accumulation: final, initial, intermediate Mortgage PART B - Appraisal Appraisal and value of economic goods Definition of appraisal The estimate: features and postulates The economic aspects of the goods The most likely market value, cost, substitution, transformation, part-whole Descriptive statistics Central trend indicators: simple, geometric, harmonic, weighted average, median, mode Dispersion indicators; average squared deviation, variance, standard deviation, variation coefficient Shape indicators; asymmetry and kurtosis The real estate market The characteristics of residential and non-residential Italian real estate market The factors affecting the real estate value The real estate market cycle: the hexagonal model Urban rents The estimate of the real estate value The method of appraisal Appraisal procedures Market comparison approach Merit coefficients approach Past values comparison approach Income capitalization approach Transformation value approach Cost depreciated approach Estimating building costs The total cost of production of the building The construction cost Analytical, synthetic procedures and mixed approaches Evaluation of compensation of expropriation for public utility The evolution of legislation on expropriation The D.P.R. 327/2001 on expropriations Expropriation allowance for building, built and unbuildable area. Temporary occupation allowance The assessment of the indemnity for predial rights Compensation for way, aqueduct, drainage, pipeline, power supply rights The land cadastre Cultivation quality and classes Cadastral Income: Dominical Income and Agrarian Income Cadastral documents and maps Conservation of land cadastre The building cadastre Categories and classes Cadastral income: Income Taxable Cadastral documents (urban map and floor plan) The conservation of building cadastre

Theoretical lessons and exercises on the preparation of an estimate developed by the student

Students are warmly invited to attend the lessons in order to benefit from the discussion of the case-studies.

Written test during official sessions with questions on economics and appraisal and solution of exercises. During the test, the student will have to demonstrate knowledge of the theory of demand, supply and the main forms of the market, also through the solution of numerical exercises. He/she will have to be able to carry out the main financial calculations of economic-appraisal interest such as the carryover of capital over time, the calculation of annuities and the amortization plan. Finally, he/she will have to demonstrate knowledge of the basic theoretical principles of appraisal, their application in real estate appraisals as well as the valuation regulated by state regulations (expropriations for public utility, compulsory land easements, real estate cadastre). The knowledge of the topics covered and the communication and application skills can be assessed during the course through two written tests of a theoretical nature, substitutive of the written exam during the official session. The first will be held at the conclusion of the Economics and Financial Mathematics part and the second at the conclusion of the Appraisal part at the end of the course. In both cases (written exam or ongoing written tests) it is compulsory to present and discuss an appraisal report of the market value of a property or other economic aspect of a real estate. The final valuation report, approved by the teacher, must be delivered 15 days before the exam session. The appraisal report can be worth from 0 (barely sufficient) to 2 additional points (very well done) beyond the grade of the written exam or the ongoing tests.

This course explores topics closely related to one or more goals of the United Nations 2030 Agenda for Sustainable Development (SDGs)