Micro-economics and Methods

2019-2020

Course Objective

This course provides a solid understanding of microeconomic theory and
introduces modern econometric techniques that enable students to perform
microeconomic policy evaluation.

Specific learning outcomes upon completion of this curricular item are
• acquiring basic knowledge on the impact of risk and uncertainty on
individual decision making
• 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
• recognizing how the existence of externalities and public goods may
distort the allocation of resourcesgaining insight into the incentives
to and constraints ono innovative activities as well their relation with
imitation, spillovers, firm size and market structure
• being familiar with the assumptions underlying cost-benefit analysis
and alternative approaches to making welfare comparisons across
different economic policies; acquiring basic knowledge in the core ideas
of auction theory and mechanism design more generally
• being able to apply core panel data econometric techniques in economic
policy analysis

Course Content

The course concentrates on the interaction between microeconomic theory,
real-world events and empirical data. In particular, we cover risk and
expected utility theory, the economics of information, game theory
applied to industrial organization, principal-agent models, moral hazard
and adverse selection, externalities and public goods. The role of the
government is discussed throughout. The course also explains
different econometric techniques adapted to the analysis of various
real-world data sets. Students learn how to set up and interpret
estimation results in the context of microeconomic policy evaluation.
Applications include estimating the effect of public policy on house
prices, expenditures on alcohol; the returns on schooling and the wage
elasticity of labour demand.

Teaching Methods

Lectures and seminars (math labs)

Method of Assessment

Written midterm (50%), final exam (50%) and seminar assignments
(pass/fail).

Literature

Snyder, C. and W. Nicholson (2012), Microeconomic theory: Basic
principles and extensions, 11th international edition, Thomson
South-Western/Cengage Learning.

Target Audience

Second year PPE students

Additional Information

Please note that participation in the seminars is mandatory.

Custom Course Registration

There is a slightly different enrollment procedure for this module. The standard procedure of the Faculty of Humanities has students sign up for (i) the module, (ii) the form of tuition (lecture and/or preferred seminar group), and (iii) the exam. However, for this module the instructor will assign the students to the seminar groups. Therefore, students should sign up for (i) the module, (ii) lecture and (iii) the exam, but not for the seminar groups.

General Information

Course Code W_JSM_203
Credits 6 EC
Period P1
Course Level 200
Language of Tuition English
Faculty Faculty of Humanities
Course Coordinator dr. M. Watanabe
Examiner dr. M. Watanabe
Teaching Staff dr. M. Watanabe
S. Sovago

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture, Seminar*

*You cannot select a group yourself for this teaching method, you will be placed in a group.

Target audiences

This course is also available as: