Course ObjectiveThis 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
• understanding the impact of various forms of asymmetric information on
• 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
Course ContentThe 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 MethodsLectures and seminars (math labs)
Method of AssessmentWritten midterm (50%), final exam (50%) and seminar assignments
LiteratureSnyder, C. and W. Nicholson (2012), Microeconomic theory: Basic
principles and extensions, 11th international edition, Thomson
Target AudienceSecond year PPE students
Additional InformationPlease note that participation in the seminars is mandatory.
Custom Course RegistrationThere 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.
|Language of Tuition||English|
|Faculty||Faculty of Humanities|
|Course Coordinator||dr. M. Watanabe|
|Examiner||dr. M. Watanabe|
dr. M. Watanabe
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.
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