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Regular version of the site
Master 2021/2022

Microeconomics (Advanced Level)

Type: Compulsory course (Economics and Economic Policy)
Area of studies: Economics
When: 1 year, 1, 2 module
Mode of studies: offline
Open to: students of one campus
Master’s programme: Economics and Economic policy
Language: English
ECTS credits: 6

Course Syllabus

Abstract

The course explores classical tools of microeconomic analysis. It examines how economic decisions are made by households and firms, and how they interact to determine quantities and prices of goods and the allocation of resources. Prerequisites: • Multivariable calculus, constraint optimization (method of Lagrange multipliers and Karush-Khun-Tucker conditions); • Basic algebra.
Learning Objectives

Learning Objectives

  • to provide students with the knowledge of core concepts and models in the field of microeconomics
  • to provide students with the knowledge of basic microeconomic models' assumptions, internal logic and predictions
  • to develop students' ability to apply the knowledge acquired to the analysis of specific economic cases
Expected Learning Outcomes

Expected Learning Outcomes

  • be able to solve and interpret stylized problems based on microeconomic models
  • be able to use these models to analyze real-world microeconomic phenomena and to evaluate issues of microeconomic policy
  • be familiar with the main elements and techniques of microeconomic theory at intermediate level
Course Contents

Course Contents

  • Topic 1. Preferences. Utility representation. Consumer’s problem. Revealed preferences
  • Topic 2. Utility maximization. Expenditure minimization. Duality in consumption. Income and substitution effects
  • Topic 3. Preferences over lotteries. Expected utility. Representation. Risk aversion. Stochastic dominance
  • Topic 4. Technologies. Returns to scale. Competitive firm problem
  • Topic 5. Cost minimization. Conditional input demands. Complements and substitutes. Short run and long run duality in production
  • Topic 6. Perfect competition. Short run and long run equilibrium. Monopoly. Welfare analysis
  • Topic 7. Cournot competition. Bertrand competition. Monopolistic competition
  • Topic 8. 2 by 2 exchange economy. Edgeworth box. Existence of general equilibrium. Efficiency. Welfare Theorems
  • Topic 9. Robinson Crusoe Economy. 2 by 2 production model. General equilibrium in production economy. Existence and efficiency
  • Topic 10. Contingent commodities. Arrow-Debreu equilibrium. Sequential trade and. Incomplete markets
  • Topic 11. Externalities. The tragedy of the commons. Pigouvian taxation. Coase Theorem
  • Topic 12. Adverse selection
Assessment Elements

Assessment Elements

  • non-blocking Home assignments
    6 problem sets with the weights of 5% each
  • non-blocking Midterm tests
    1 tests with the weights of 20%
  • non-blocking Final test
Interim Assessment

Interim Assessment

  • 2021/2022 1st module
  • 2021/2022 2nd module
    0.5 * Final test + 0.3 * Home assignments + 0.2 * Midterm tests
Bibliography

Bibliography

Recommended Core Bibliography

  • Advanced Microeconomic Theory, 3rd ed., 656 p., Jehle, G. A., Reny, P. J., 2011

Recommended Additional Bibliography

  • Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic Theory. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780195102680