Advanced Microeconomics

2018-2019

Course Objective

This course prepares the theoretical groundwork for microeconomic policy
courses elsewhere in the MSc Economics curriculum, highlighting
traditional economic approaches, their normative foundations, and recent
theories of imperfect competition and information economics. The goal of
the course is to make the student confortable as a user of fundamental
concepts of microeconomic theory at an advanced level.

By the end of the course the student will:



- be familiar with the main, unifying microeconomics principles and know
how to analyze economic problems using the tools of microeconomics
 (MA
learning goals ACADEMIC AND RESEARCH SKILLS and BRIDGING THEORY AND
PRACTICE - KNOWLEDGE)

- know the main concepts of consumer choice and firm behavior, and their
relevance for equilibrium and welfare analysis (MA learning goals
ACADEMIC AND RESEARCH SKILLS and BRIDGING THEORY AND PRACTICE -
KNOWLEDGE)

- be able to identify market failure and evaluate economic policy with
regard to efficiency and equity (MA learning goals ACADEMIC AND RESEARCH
SKILLS and BRIDGING THEORY AND PRACTICE- APPLICATION)

- be prepared to recognize situations of strategic interaction, as well
as the methods to predict economic outcomes in those situations (MA
learning goals ACADEMIC AND RESEARCH SKILLS and BRIDGING THEORY AND
PRACTICE- APPLICATION)

- be familiar with expected utility theory for decision-making under
uncertainty such as insurance (aimed at MA learning goals ACADEMIC AND
RESEARCH SKILLS and BRIDGING THEORY AND PRACTICE - KNOWLEDGE)

- know the limitations to economic policy (aimed at MA learning goals
BROADENING YOUR HORIZON and SELF-AWARENESS)

Course Content

This course equips the student with microeconomics tools needed for the
subsequent policy courses. Thus, policy applications in themselves are
not the subject of the current course, but rather their preparation. The
course focuses on modeling and requires substantial math skills (in
particular calculus). Traditional topics (part I) include the theory of
the firm, consumer choice and demand, partial and general equilibrium
analysis and aspects of market failure. Part II covers risk and
insurance under symmetric and asymmetric information, concepts of game
theory, as well as the economics of information and incentives. Using
problem sets and exercises will increase and deepen the understanding of
microeconomics modeling. This will help students touch upon a large
number of microeconomic policy issues from a unified perspective.

Teaching Methods

lecture
tutorial

Method of Assessment

Written examination (75%), tutorial (problem sets, 25%) , if exam grade
5.0 or higher.

Entry Requirements

Familiarity with Microeconomics at the level of Varian, H. R.
Intermediate Microeconomics. 8th edition. W. W. Norton, 2010.

Familiarity with Mathematics at the level of Sydsaeter, Knut and
Hammond, Essential Mathematics for Economic Analysis, Prentice Hall, 3rd
ed., 2008

Literature

Snyder and Nicholson, Microeconomic Theory: Basic Principles and
Extensions, 11th ed.

Recommended background knowledge

All students (but specially those who think need to refresh their math
skills) are strongly encouraged to attend the course "Math Refresher",
starting end of August (details t.b.a.).

For more information about Math Refresher, see Canvas.

General Information

Course Code E_EC_AMIEC
Credits 6 EC
Period P1
Course Level 400
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator prof. dr. J.L. Moraga Gonzalez
Examiner prof. dr. J.L. Moraga Gonzalez
Teaching Staff prof. dr. J.L. Moraga Gonzalez

Practical Information

You need to register for this course yourself

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: