Advanced Microeconomics and Macroeconomics
A.Y. 2025/2026
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 Macroeconomics:
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.
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 Macroeconomics:
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.
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.
Lesson period: Second trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Second trimester
Prerequisites for admission
Before starting the Advanced Microeconomics and Macroeconomics course, students are strongly encouraged to take a basic mathematics course. A minimum requirement is familiarity with the concepts of single-variable and multivariable functions, derivatives, logarithmic and exponential functions.
Assessment methods and Criteria
The course and the exam are conducted in English. The exam is written and mandatory for all students. It consists of quantitative and numerical exercises, each of which may include multiple parts. Some questions will be in multiple-choice format, where students must select the option they consider correct. Incorrect answers will receive zero points, and penalties for wrong answers may be applied (such penalties, if any, will be specified in the instructions of each individual exam).
Module I: Advanced Microeconomics
Course syllabus
1. Consumer Theory
1.1 Budget Constraint
1.2 Preferences and Utility
1.3 Utility Maximization
1.4 Substitution and Income Effect
1.5 Choice under uncertainty and insurance
2. Theory of the Firm
2.1 Technology
2.2 Cost minimization
2.3 Cost curves
2.4 Profit Maximization
2.5 Firm supply
2.6 Industry Supply
3. Partial Equilibrium
3.1 Market Demand and supply
3.2 Equilibrium
4: Choice under risk
4.1 Risk and risk aversion
4.2 Expected Utility Theory
5. Game Theory
5.1 Games and Strategies in normal and extensive form
5.2 Nash Equilibria and Subgame Perfect Equilibria
5.3 Trigger Strategies in Repeated Games
1.1 Budget Constraint
1.2 Preferences and Utility
1.3 Utility Maximization
1.4 Substitution and Income Effect
1.5 Choice under uncertainty and insurance
2. Theory of the Firm
2.1 Technology
2.2 Cost minimization
2.3 Cost curves
2.4 Profit Maximization
2.5 Firm supply
2.6 Industry Supply
3. Partial Equilibrium
3.1 Market Demand and supply
3.2 Equilibrium
4: Choice under risk
4.1 Risk and risk aversion
4.2 Expected Utility Theory
5. Game Theory
5.1 Games and Strategies in normal and extensive form
5.2 Nash Equilibria and Subgame Perfect Equilibria
5.3 Trigger Strategies in Repeated Games
Teaching methods
The course consists of theoretical lectures and practical sessions. The purpose of the practical sessions is to show students how the theory learned during lectures can be applied in practice—for example, to solve numerical exercises.
Teaching Resources
Walter Nicholson and Christopher Snyder: Microeconomic Theory: Basic Principles and Extensions. 10th edition
H. Varian: "Intermediate Microeconomics: A modern approach", 9th Edition (Last
Edition)
H. Varian: "Intermediate Microeconomics: A modern approach", 9th Edition (Last
Edition)
Module II: Advanced Macroeconomics
Course syllabus
First part: Output fluctuations and inflation
1. Production, unemployment and inflation. Mishkin, Ch. 1, 2.
2. Output and inflation in the long run. Mishkin, Ch. 3, 5.
3. Financial markets, monetary policy and output fluctuations. Mishkin, Ch. 5, 8, 9, 10, 17.
4. The Aggregate-Demand Aggregate-Supply model. Mishkin, Ch. 10, 11, 12.
5. The role of fiscal and monetary policy. Mishkin, Ch. 13.
Second part: International financial integration and crises
6. Financial integration; The Balance of Payments. Mishkin, Ch. 4, SUW Ch. 1
7. Saving, Investment, the current account and debt sustainability. Mishkin, Ch. 4. SUW Ch. 2, 3, 4.
8. Global imbalances, external adjustment and Sudden Stops. SUW Ch. 1, 7, 9.
9. Exchange rate determination in the short and the long run. Mishkin, Ch. 17. SUW Ch. 8, 9, 10.
10. Sovereign debt crises and currency crises. SUW ch 15.
1. Production, unemployment and inflation. Mishkin, Ch. 1, 2.
2. Output and inflation in the long run. Mishkin, Ch. 3, 5.
3. Financial markets, monetary policy and output fluctuations. Mishkin, Ch. 5, 8, 9, 10, 17.
4. The Aggregate-Demand Aggregate-Supply model. Mishkin, Ch. 10, 11, 12.
5. The role of fiscal and monetary policy. Mishkin, Ch. 13.
Second part: International financial integration and crises
6. Financial integration; The Balance of Payments. Mishkin, Ch. 4, SUW Ch. 1
7. Saving, Investment, the current account and debt sustainability. Mishkin, Ch. 4. SUW Ch. 2, 3, 4.
8. Global imbalances, external adjustment and Sudden Stops. SUW Ch. 1, 7, 9.
9. Exchange rate determination in the short and the long run. Mishkin, Ch. 17. SUW Ch. 8, 9, 10.
10. Sovereign debt crises and currency crises. SUW ch 15.
Teaching methods
The course consists of theoretical lectures and practical sessions. The purpose of the practical sessions is to show students how the theory learned during lectures can be applied in practice—for example, to solve numerical exercises.
Teaching Resources
Mishkin. Macroeconomics policy and practice. Pearson (2015)
Smitt-Grohe and Uribe (SUW). Open economy macroeconomics. Princeton university press 2017. Open access. http://www.columbia.edu/~mu2166/book/
Smitt-Grohe and Uribe (SUW). Open economy macroeconomics. Princeton university press 2017. Open access. http://www.columbia.edu/~mu2166/book/
Module I: Advanced Microeconomics
SECS-P/01 - ECONOMICS - University credits: 6
Lessons: 39.6 hours
Professor:
Macedoni Luca
Module II: Advanced Macroeconomics
SECS-P/01 - ECONOMICS - University credits: 6
Lessons: 39.6 hours
Professor:
Leonardi Marco
Professor(s)