Advanced Microeconomics and Macroeconomics

A.Y. 2020/2021
12
Max ECTS
80
Overall hours
SSD
SECS-P/01
Language
English
Learning objectives
Module Advanced Microeconomics
This course has essentially two objectives: (i) to provide students with the tools necessary to tackle economic problems in a systematic way, and (ii) to develop basic intuitions that can help students to analyze economic puzzles and policy problems they will encounter during the rest of their career. We will develop a theoretical model of both consumer and producer behavior. Combining both groups within a market and across markets provides a framework that is the basis for virtually all economic analysis. To motivate the concepts and to illustrate the usefulness of the tools, we will cover applications as time permits.

Module Advanced Macroeconomcis:
The course is an introduction to the analysis of the modern models for Dynamic Macroeconomics. It applies relevant formal economic reasoning and advanced optimization techniques to study such macroeconomic topics as: (1) Investment Decisions; (2) Growth Theory. As for Economic Growth, after a broad description of the main "facts" about the process of long-run per-capita income growth, the course will analyze such topics as the relationship between: Physical capital accumulation and growth; Human capital investment, health, and growth; Research and development, population, and income growth.
Expected learning outcomes
Module Advanced Microeconomics:
At the end of the microeconomics module students will be able to:1) understand the theory of consumption; 2) work with basic production theory; 3) distinguish the characteristics of markets in perfect competition, monopoly and oligopoly.

Module Advanced Macroeconomics:
At the end of the course students will be able to: (1) Approach autonomously the reading of modern models in the field of dynamic macroeconomics; (2) To obtain the fundamental theoretical results of such models through the application of the related dynamic maximization techniques and (3) To interpret economically the results obtained and their economic policy implications.
Course syllabus and organization

Single session

Responsible
Lesson period
Second trimester
The exam will be written in presence (if the situation allows). Otherwise, one of the methods suggested by the Academic Authorities (in substitution for the written exam in presence) will be employed.
Prerequisites for admission
Before taking the Advanced Microeconomics and Macroeconomics course students are warmly invited to take a basic course in Mathematics.
Assessment methods and Criteria
For all students the exam is written. The aim of the written exam is to make sure that students have fully understood the basic concepts of modern Microeconomics and Macroeconomics discussed during the whole course and are able to properly use them in describing real (microeconomic and macroeconomic) phenomena.
The written exam is composed of a mix of theoretical and numerical exercises.
Every exercise may, in turn, be composed of different questions.
All questions are in the form of multiple-choices questions. Hence, for any single question the student will need to choose the answer that s/he considers to be the right one. For any unanswered question, the students gets 0 points. There can be a penalty for wrong answers.
Module Advanced Microeconomics
Course syllabus
1. Consumer Theory

1.1 Budget Constraint (Ch. 2)
1.2 Preferences and Utility (Chs. 3 and 4)
1.3 Utility Maximization (Chs. 5 and 6)
1.4 Substitution and Income Effect (Ch. 8)
1.5 Welfare Measurement (Ch. 14)

2. Theory of the Firm

2.1 Technology (Ch. 19)
2.2 Cost minimization (Ch. 21)
2.3 Cost curves (Ch. 22)
2.4 Profit Maximization (Ch. 20)
2.5 Firm supply (Ch. 23)
2.6 Industry Supply (Ch. 24)

3. Partial Equilibrium

3.1 Market Demand (Ch. 15)
3.2 Equilibrium (Ch. 16)
Teaching methods
The course is composed of theoretical as well as practical classes. The aim of the practical classes is to show students how they can concretely (e.g., in view of the resolution of numerical exercises) use the theory learnt during the theoretical section of the course.
Teaching Resources
H. Varian: "Intermediate Microeconomics: A modern approach", 9th Edition (Last
Edition)
Module Advanced Macroeconomics
Course syllabus
1. Dynamic Models of Investment (Chapter 2, B-B)

2. Growth in Dynamic General Equilibrium:
2.1. The basic facts of economic growth (Chapter 1, J-V)
2.2. The neoclassical growth model (Chapter 4, B-B)
2.3. Empirical applications of neoclassical growth models (Chapter 3, J-V)
2.4. Health, Income and Growth (Chapter 6, B-C-T, pp. 169-207)
2.5. The economics of ideas (Chapter 4, J-V)
2.6. The engine of growth (Chapter 5, J-V)
2.7. Alternative theories of endogenous growth (Chapter 9, J-V).
Teaching methods
The course is composed of theoretical as well as practical classes. The aim of the practical classes is to show students how they can concretely (e.g., in view of the resolution of numerical exercises) use the theory learnt during the theoretical section of the course.
Teaching Resources
B-B:
Fabio-Cesare BAGLIANO, and Giuseppe BERTOLA: "Models for Dynamic Macroeconomics", Oxford: Oxford University Press, 2007 (First Edition in paperback).
Chapter 2: DYNAMIC MODELS OF INVESTMENT
- No Sections: 2.6 and 2.8
- Section 2.7: Up to p. 77

Chapter 4: GROWTH IN DYNAMIC GENERAL EQUILIBRIUM
- Till Section 4.1: Up to p. 138

B-C-T:
Alberto BUCCI, Klaus PRETTNER, and Alexia PRSKAWETZ: "Human Capital and Economic Growth: The Impact of Health, Education, and Demographic Change", Basingstoke, UK: Palgrave-MacMillan, 2019.

J-V:
Charles I. JONES, and Dietrich VOLLRATH: "Introduction to Economic Growth", New York: W.W. Norton & Co., 2013 (Third Edition).
Module Advanced Macroeconomics
SECS-P/01 - ECONOMICS - University credits: 6
Lessons: 40 hours
Professor: Bucci Alberto
Module Advanced Microeconomics
SECS-P/01 - ECONOMICS - University credits: 6
Lessons: 40 hours
Professor: Leonardi Marco