Advanced Microeconomics I
Logistics:
Lecturer: Young Joon Park (C403)
Office Hours:
Lectures:
TA:
TA Sessions:
Course Description:
In Advanced Microeconomics 1, we cover basic tools and current topics in modern microeconomic theory. This is the first course of the microeconomic sequence offered for Economics and Finance program. The course has several objectives including the followings: (a) acquiring basic knowledge of modern microeconomic theory that you can further pursuit in higher level; (b) obtaining familiarity with the use of theoretical tools in other topics in economics; and (c) developing the ability to model and formally analyze economic issues.
Prerequisites:
The knowledge of undergraduate-level microeconomics is useful.
Compared to undergraduate-level, there rare more mathematical methods involved. Basic knowledge of Calculus, Linear Algebra and Probability Theory is required.
If you find your mathematical background is not strong enough, you may consider taking Mathematics for Economics offered by Prof. Tu.
Textbook:
Advanced Microeconomic Theory, 3rd Ed. Geoffrey A. Jehle & Phillip J. Reny.
There are several more textbooks that might be useful for your reference.
Microeconomic Theory, Mas-Colell, Whinston & Green.
Microeconomic Analysis, H. Varian.
Intermediate Microeconomics, H. Varian.
Mathematics for Economists, Simon & Blume
Evaluation
Your grade depends on two exams, class participation and homework.
There will be one midterm exam (30%) and one final exam (50%).
All exams are closed-book exam.
The actual date and time of exams will be announced later.
The final exam is cumulative.
The class participation will be marked periodically.
There will be several problem sets that will be marked in a “loose” way.
It is your responsibility to make sure you learned how to solve these problems.
(Tentative) Schedule:
I. Introduction & Mathematics Overview (Ch.A1, A2)
? Main Objectives of the Course
? Review of Calculus and Linear Algebra
? Some Topics of Real Analysis and Topology
II. Consumer Theory (Ch. 1, 2.1-2.3)
? Preliminaries of Consumer’s Choice
? Preference Ranking
? Utility Function
? Utility Maximization Problem and Marshallian Demand
? Indirect Utility Function
? Expenditure Minimization Problem and Hicksian Demand
? Expenditure Function
? Duality
? Comparative Statics of Demand
? Aggregate Demand
III. Producer Theory (Ch. 3)
? Production Sets and Production Function
? Cost Function
? Short Run Cost Functions
? Long Run Cost Functions
? Profit Maximization and Supply
? Factor Demand Functions
IV. Decision Under Uncertainty (Ch. 2.4)
? Objective Uncertainty
? Subjective Uncertainty
? Attitude toward Risk
? Alternative Models
In case time permits we will also cover:
V. Intertemporal Choice & Production: Supply and Demand for Factor Market
? Supply of Labor: The Labor-Leisure Decision
? Supply of Capital: The Consumption-Saving Decision
? Intertemporal Production: The Demand for Capital