ECS504 Advanced microeconomic theory I
The purpose of this course is to give a solid introduction to microeconomic theory and some of its recent developments. The course 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.
After completing this course, students shall:
- understand 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;
- be able to explain the main results of neoclassical price theory;
- be aware of the main assumptions that lie behind those results and their empirical validity;
- be able to read and understand 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;
- be able to formulate a microeconomic research question by structuring it as a formal model;
- be able to manage to obtain useful economic predictions through the use of mathematical tools and a sound economic intuition;
- be able to identify central measurable parameters, necessary for operationalising microeconomic models.
- be able to communicate the research questions, solution methods and answers in a clear-cut manner by abstracting from considerations that are of minor importance.
Regular lectures and assignment classes
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
Active participation during lectures
Two assignments during the term (2x15%), and a 4-hour written school exam (70%) at the end of the term. Each component will be marked as Pass/Fail. All components must have a passing grade to pass the course.
Grading scale: Pass/Fail.
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.
- ECTS Credits
- Teaching language
Autumn. Offered Autumn 2018
Professor Fred Schroyen, Department of Economics.