Advanced microeconomics

A.Y. 2020/2021
Overall hours
Learning objectives
The course is designed to provide a rigorous introduction to the conceptual apparatus of modern microeconomics. Its objective is to equip students with the basic analytical tools required to read and understand contemporary literature in theoretical and applied microeconomics and to approach advanced research topics both in microeconomic theory and in other subfields of economics in which knowledge of microeconomic theory is required (e.g. development, education, health, industrial, international, labour, and public economics).
Expected learning outcomes
After the course, students must be able to use economic reasoning to understand the main determinants of individuals' and firms' decisions, the functioning of markets in real world settings, and how they are influenced by public policies or changes in economic fundamentals. This theoretical knowledge is highly complementary to the data analysis techniques that students will learn in other courses (such as "Research Methods") and are key to a correct understanding and interpretation of the empirical evidence.
Students will also acquire the basic knowledge needed to approach more advanced topics in other subfields of economics for which microeconomics is a pre-requisite (e.g. development, education, health, industrial, international, labour, and public economics, among others).
Course syllabus and organization

Single session

Lesson period
Second trimester
Lectures and classes will be delivered in Microsoft Teams in a dedicated channel named "Advanced Microeconomics (EPS) - 2020/21". Teaching and learning material will be posted on the ARIEL website of the course

Written online exams will take place using the platform, with invigilation through Zoom.
Course syllabus
1. Preference and Utility
2. Demand Theory and Applications
3. Production Theory and Applications
4. Choice under uncertainty (conditional on time availability)
5. Perfect Competition
6. Monopoly
7. Externalities and Public Goods

The program could be subject to small changes from year to year. Please check the ARIEL website for updates.
Prerequisites for admission
Students are expected to have fully mastered the topics dealt with in the course "Optimization" (6 credits), e.g. linear algebra, intermediate calculus, and an introduction to static optimization. A reasonable acquaintance with introductory and intermediate microeconomics (consumer and producer theory, partial competitive equilibrium theory) is expected.

Useful preparatory readings:
Hal Varian, Intermediate Microeconomics: A modern approach, 9th Edition (Last Edition).

Simon, C.P. and Blume, L. (1994), Mathematics for Economists, W. W. Norton & Company, Inc.
Teaching methods
The course uses both lectures in which students are taught Microeconomic theory and classes mainly devoted to solving exercises.
Teaching Resources
Munoz-Garcia (2017), Advanced Microeconomic Theory. An intuitive approach with examples, The MIT Press, Cambridge Massachusetts, London England. [chapters 1, 2, 3, 4, 5, 6 (partial equilibrium), 7, 9.1, 9.3.2, 9.11, 9.12. The list of chapters (sections) may be subject to small changes from year to year, please check the ARIEL website for updates.]

Munoz-Garcia (2017), Practice Exercises for Advanced Microeconomic Theory, The MIT Press.

Additional material (solutions to exercises of the classes), some past exams text and solutions will be available in the ARIEL platform.

Videos of the lectures will be posted on ARIEL (and/or MS Teams).

Other useful readings:
Hal Varian, Microeconomic Analysis, Third Edition.
Assessment methods and Criteria
The final assessment is based on a written exam for both attending and non-attending students. The final written exam consists of both open questions and exercises similar to those that have been solved in the course classes.
SECS-P/01 - ECONOMICS - University credits: 6
Practicals: 40 hours
Lessons: 20 hours
Wednsday 15.00-17.00 on MS Teams unless stated differently in this website (please write to me for confirmation). Office hours of 13 Jan moved to 17-19, same day.
MS Teams