Microeconomics I (advanced level)

2022/2023

Academic Year

ENG

Instruction in English

3

ECTS credits

Delivered at:

Department of Economics

Course type:

Compulsory course

When:

1 year, 2 module

Instructor

Kuchumova (Paramonova), Yulia A.

Course Syllabus

Abstract

Microeconomics I is the first part of the two-semester graduate-level course, which provides a rigorous treatment of microeconomic theory and its applications. We study the theory of consumer choice that models the decisions of individual economic agents. We begin by introducing the notion of consumer preferences moving then to the utility function concept. We formulate the consumer problem that is fundamental for deriving the demand function and analyzing its properties. We introduce a dual consumer problem, which presumes minimization of expenditures and leads to the Hicksian demand function. Afterwards, we study decision-making under uncertainty and introduce the expected utility theory.

Learning Objectives

• The objective of the course is to provide the students with a thorough knowledge and understanding of the foundations of modern economic analysis. The students will be introduced to the classical results and recent developments in microeconomic theory but the main focus will be on developing their modeling skills and encouraging them to think analytically about real world phenomena.

Expected Learning Outcomes

• Analyze properties of demand functions.
• Discuss and apply the standard approach to modelling uncertainty in the economics and finance literature
• Explain the relationship between observed choices and unobserved consumer preferences
• Set up and solve decision problems involving uncertainty
• Set up and solve models of consumer choice theory to obtain individual and aggregate market demands for goods

Course Contents

• Preference relations and ration choice
• The Consumer’s Problem
• The additional topics of consumer theory
• Choice under uncertainty

Assessment Elements

• Homework assignments
• In-class participation
• Final examination

Interim Assessment

• 2022/2023 2nd module
  0.05 * In-class participation + 0.25 * Homework assignments + 0.7 * Final examination

Bibliography

Recommended Core Bibliography

• Advanced microeconomic theory, Jehle, G.A., 2011

Recommended Additional Bibliography

• Microeconomic theory, Mas-Colell, A., 1995