 |
General Description: The purpose of this course is to introduce students to microeconomic analysis and to bring them to the level of a graduate course in economics. The duration of the course is 6 modules, 7 weeks each with two 2-hour lecture per week. There is also one section per week where students meet in smaller groups to discuss the issues as well as to solve problems. There is a written exam at the end of the each module. Thirst 3 modules are devoted to the intermediate micro course based on textbook of W.Nickolson “Microeconomic theory. Basic principles and extensions”, 5th edition, 1992. The other three modules bring students to the graduate level and deal with several special topics of Microeconomics: Uncertainty and Game Theory, General Equilibrium Theory, Welfare Economics and Incentives. The advanced course is based on the book by A.Mas-Colell, M.Whinston, J.Green “Microeconomic Theory”, N.Y. Oxford, 1995. Thus, the course is aimed not only at presenting the basic concepts and problems with which microeconomic analysis is concerned, but also at exploring some fundamentals in the method of microeconomic investigation. Reading List: Varian H., Intermediate Microeconomics, 2nd edition, 1990 (VI) Varian H., Microeconomic Analisys, 3rd edition, 1992 (VA) Gravelle H. and R.Rees, Microeconomics, 2nd edition, 1992, (GR) Kreps D.M. ,Microeconomic Theory, 1990, (KR) A.Mas-Colell, M.D.Whinston, J.R.Green, Microeconomic Theory, 1995, (MWG) W.Nicholson, Microeconomic Theory, 1992, 5th edition, (NC)
1. General Introduction 4 hrs. a)Fundamental Economic Concepts: PPC, efficiency, opportunity cost and the idea of price, comparative advantage b)Tools and Implications: A note on optimization, the Envelope theorem for constrained optimization. NC Chs 1,2 GR Ch 2 2. Rational Agent Behavior: Consumers 6 hrs. a)Preferences and Principle of Rationality: the postulates of rationality, individuals' economic problem: the budget set, revealed preferences, index numbers. b)Utility: Functional representability of preferences and the utility The function, cardinal and ordinal utility, property of utility functions, marginal utility, indifference curves and subjective rate of substitution. VI Chs 2-5 NC Chs 3-4 3. Consumer Demand / Market Demand 6 hrs a)Utility maximization and the derivation of Marshallian demand curves b)Comparative Statics: own substitution and income effects, the Slutsky equation, types of goods and types of relationships, Engel curves, c)Demand Elasticity, Consumer Surplus, Market Demand. d)Buying and Selling, Intertemporal Choice VI Chs 6-10, 15 NC Chs 5-7 4. Equilibrium of Pure Exchange Economy 4 hrs VI Chs 16 NC Chs 8 5. Choice under Uncertainty: Expected Utility, Risk Aversion, Measuring Risk, Investment in Risky Assets 4 hrs. VI Chs 12-13 NC Chs 9 6. The Economics of Infotrmation 4 hrs NC Chs 10 VI Chs 32 1. Technology: Production function, Marginal Product, Isoquants, Technical Rate of Substitution, Elasticity of Substitution, Returns to Scale, Examples of Technology 2 hrs NC Ch. 11 VA Ch. 1 2. Profit Maximization and Cost Minimization. 4 hrs NC Chs. 12-13 VA Ch. 2-4 3. Supply of Competitive Firm. Alternative Models of the Firm. 4 hrs NC Chs. 13-14 VA Chs. 5-6, 13 GR Ch.13 4. Partial Equilibrium Model of Competitive Industry 4 hrs. NC Ch. 15 VA Ch. 13 5. Models of Monopoly Markets, Monopolistic Competition 6 hrs NC Chs. 19-20 VA Ch. 14 GR Ch.11 6. Strategic Behavior: Introduction to Game Theory 4 hrs NC Ch. 21 VA Ch. 15 7. Oligopoly: Cournot Model, Bertrand Model, Stackelberg Model, Collusion, Prisoner's Dilemma 4 hrs. NC Ch. 20-21 VA Ch. 16 GR Ch. 12 1. Factor Markets 6 hrs. a) Demand for Inputs: Competitive, Monopolistic b) Supply of Labour and Capital NC Ch.22-24 VI Ch 24 GR Ch.14 2. General Equilibrium in a Productive Economy: Definitions, Existence and Efficiency 6 hrs NC Ch. 16 VA Chs. 18, 21 3. Welfare Economics: the First and the Second Welfare Theorems 6 hrs NC Chs 17 VA Ch. 22 4. The Role of Information in General Equilibrium Analysis 4 hrs VA Ch.25 NC Ch.18 5. Externalities and Public Goods 4 hrs NC Ch.25 VA Chs 23-24 6. Social Choice Theory 2 hrs NC Ch. 26 1. Choice Theory and Preferences: 4 hrs. KR Ch.2 MWG Ch.1 2. Choice under Uncertainty 6 hrs KR Ch.3 MWG Ch.6 3. Basic Elements of Non-Cooperative Games 2 hrs KR Ch.11 MWG Ch.7 4. Simultaneous-Move Games: Dominant and Rationalizable Strategies, Nash Equilibrium, Bayesian-Nash Equilibrium, Trembling-Hand Perfection 6 hrs KR Ch.12-13 MWG Ch.8 5. Dynamic Games: Subgame Perfection, Sequential Rationality, Forward Induction 8 hrs KR Ch. 14 MWG Ch.9 6. Bilateral Bargaining 2 hrs KR Ch.15 MWG Ch.9 1. Externalities and Public Goods 6 hrs MWG Ch.11 2. Market Power 4 hrs MWG Ch.12 3. Informational Asymmetries and Adverse Selection 4 hrs MWG Ch.13 4. Signaling and Screening 6 hrs MWG Ch.13 5. The Principal-Agent Problem: Hidden Actions 4 hrs MWG Ch.14 6. The Principal-Agent Problem: Hidden Information 4 hrs MWG Ch.14 1. General Equilibrium Theory: Some Examples 2 hrs MWG Ch.15 2. Equilibrium and Its Basic Welfare Properties 4 hrs MWG Ch.16 3. The Positive Theory of Equilibrium: Existence, Uniqueness, Comparative Statics, Stability 8 hrs MWG Ch.17 4. Some Foundations for Competitive Equilibria 4 hrs. MWG Ch.18 5. General Equilibrium under Uncertainty: Arrow-Debreu Equilibrium, Sequential Trade, Asset Markets 6 hrs MWG Ch.19 6. Intertemporal Equilibrium, Social Choice Theory 4 hrs MWG Chs.20, 21
|
|
Economics
of Transition Elements
of the Economics History
of Economic
|
|||||||
|
|
|||||||||
