Master
2021/2022
Microeconomics (Advanced Level)
Type:
Compulsory course (Economics and Economic Policy)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
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
Contact hours:
90
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
- 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
- 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
- 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
- Home assignments6 problem sets with the weights of 5% each
- Midterm tests1 tests with the weights of 20%
- Final test
Interim Assessment
- 2021/2022 2nd module0.3 * Home assignments + 0.5 * Final test + 0.2 * Midterm tests
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