Advanced Microeconomic Theory I

ECS504 Advanced Microeconomic Theory I

  • Topics

    Topics

    The purpose of this course is to give a solid introduction to microeconomic theory and some of its recent developments. It introduces the basic analytical tools that are necessary to conduct research in the main fields of economics, finance and management science.

     

    The topics covered in this course are:

    choice and demand theory, welfare measurement, aggregation of individual behaviour, theory of the firm, general economic equilibrium, criteria for decision making under risk and uncertainty, efficient risk sharing, equilibrium under uncertainty.

  • Learning outcome

    Learning outcome

    At the end of the course, students shall be able to

     

    Knowledge

    --grasp the methods to study problems related to the behaviour of individual agents (consumers, business firms, and investors) and their interaction through markets and other social institutions;

    --explain the main results of neoclassical price theory;

    --be aware of the main assumptions that lie behind those results and their empirical validity;

     

    Skills

    --to read scientific articles in the fields of economics, finance and management science while understanding the role of invoked microeconomic assumptions and the references to standard microeconomic results;

    -- to formulate a microeconomic research question by structuring it as a formal model;

    --manage to obtain useful economic predictions through the use of mathematical tools and a sound economic intuition;

    -- identify central measurable parameters, necessary for operationalising microeconomic models.

     

    General competence

    -- communicate the research questions, solution methods and answers in a clear-cut manner by abstracting from considerations that are of minor importance.

  • Teaching

    Teaching

    Regular lectures and assignment classes

  • Required prerequisites

    Required prerequisites

    Students should have good knowledge of microeconomic concepts and tools at the intermediate level (such as SAM010 and SAM020), and be familiar with linear algebra, constrained optimisation techniques and comparative statics analysis (at the level of Dixit, 1990, Optimisation in economic theory, Oxford, OUP, chs 1-5,8,9). Students who need to fresh up their knowledge of these techniques are welcome to sit in on the first part of the master course ECO401 Optimisation and microeconomic theory.

  • Requirements for course approval

    Requirements for course approval

    Two problem sets.

     

  • Assessment

    Assessment

     

    Two assignments during the term (2x10%), active participation during lectures (10%), and a 4-hour exam (70%) at the end of the term. The three different components are numerically graded and a weighted average is transformed to a mark on the A-F scale. If necessary, a re-evaluation will be based on the written evaluation forms (90%) before the final mark is computed.

  • Grading Scale

    Grading Scale

    Grading scale A - F.

  • Computer tools

    Computer tools

    None.

  • Semester

    Semester

    Autumn

  • Literature

    Literature

    Mas-Colell, A , M Whinston & J Green (1995) Microeconomic Theory (Oxford: Oxford University Press) (main text)

    Eeckhoudt L, Ch Gollier and H Schlesinger (2005) Economic and financial decisions under risk (Princeton: Princeton University Press) (selected chapters);

    as well as a selection of papers and articles.

Overview

ECTS Credits
4
Teaching language
English
Semester
Autumn

Course responsible

Fred Schroyen, Department of Economics.