Microeconomics and Methods

2019-2020

Course Objective

This course offers the main theoretical concepts in consumer choice,
firm behavior and analysis of imperfectly competitive markets. It also
makes students familiar with various microeconometric methods. These
methods are often used in economic research, both to test predictions
from economic theory and to assess the effectiveness of economic policy.

Specific learning outcomes upon completion of this curricular item are
• being able to understand the relevance of economics for modern
societies
• acquiring knowledge in the decisions to be taken by individual
consumers and producers to maximize utility and profit
• gaining insight into the determination of the equilibrium outcomes in
different market structures
• analyzing firm behavior in monopolistic and oligopolistic markets
• being able to evaluate public economic policy including competition
law aimed at correcting market failures in imperfectly competitive
markets
• understanding the impact of various forms of asymmetric information on
economic transactions
• learning about the tools that governments might use for addressing
market failures
• being familiar with the basic econometric techniques
• being able to critically evaluate empirical research in economic
applications
• being able to make decisions about the appropriate statistical model
• being capable of performing empirical research using the software
package STATA

Course Content

This course focuses on fundamental microeconomic theory and methods for
applied economic research.

The course discusses the main theoretical concepts and policy
applications in microeconomics. Applying economic tools of analysis
helps students to gain an understanding of how decisions are being made
at the micro level by firms, consumers and government. Microeconomics
also helps evaluating observed outcomes and the consequences of policy
choices. In particular, we cover consumer and producer behavior, game
theory, market structures (perfect competition, monopoly, oligopoly) and
market imperfections. The role of policy will be discussed throughout.

Correct validation of economic theory can only be achieved with
empirical research and public policies need to be evaluated in order to
understand their effectiveness. Therefore, this course also provides an
overview of econometric research methods in economics and students learn
how to apply these methods to real-world data Attention is devoted both
to the theory underlying the different techniques and the practical
application. An important aspect of the course is that students learn
how to interpret estimation results.

Teaching Methods

Lectures and seminars

Method of Assessment

Written final exam (80%) and written group assignments (20%)

Entry Requirements

Students are strongly advised to follow Math Refresher and Introductory
STATA course in the last week of August.

Literature

Banerjee, S., 2015: Intermediate Microeconomics: A tool-building
approach. Routledge (ISBN 9780415870054)
Stock, JH. and MW. Watson. 2015. Introduction to Econometrics. Updated
3rd global edition. Pearson Education (ISBN 10: 1-292-07131-1)

Background text: Onderstal, A.M., 2014. Economics of organizations and
markets. Pearson
Benelux (ISBN 9789043030410)

General Information

Course Code E_EC_MM
Credits 6 EC
Period P1
Course Level 400
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. E.I. Motchenkova
Examiner dr. E.I. Motchenkova
Teaching Staff dr. H.R.A. Koster
dr. T. de Graaff
S. Sovago
dr. E.I. Motchenkova
dr. S. Dobbelaere

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: