ECS504 PhD Microeconomics I

• Topics

  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:

  • 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
  • incomplete asset markets

• Learning outcome

  Upon completion of the course, the students will be able to:

  Knowledge

  • apply 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;
  • discuss the main assumptions that lie behind those results and their empirical validity;

  Skills

  • discuss 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;
  • 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

  Regular lectures and assignment classes.

• 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

  Active participation during lectures.

• Assessment

  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. Assignments and exam must be written in English.

  Expected release dates of the assignments: around 26/9 and 24/10.  The handing-in deadline is about two weeks after the release date.

• Grading Scale

  Grading scale: Pass/Fail.

• Computer tools

  None.

• 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.