The objective of this course is to provide a thorough knowledge of the analytical methods and the recent theoretical developments in microeconomics. At the end of this course a student will be able to understand the microeconomic foundations of recent macroeconomic theory; to handle the analytical tools needed for static optimization; to apply theoretical methods in empirical studies; to acquire the analytical tools needed for further studies in more specialized fields of economics.
teacher profile teaching materials
Additional material will be provided during classes.
Fruizione: 21210235 Advanced Microeconomics in Scienze Economiche LM-56 BLOISE GAETANO
Programme
1. Consumer theory: Preference and choice. Budget constraint and optimal consumption. Demand and comparative statics. The weak axion of revealed preferences. Utility maximization and expenditure minimization. Demand, indirect utility and expenditure. Welfare evaluation of economic changes. 2. Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs. Efficient production. A digression of the linear activity model. 3. Choice under uncertainty: Risk and preferences. Expected utility theorem. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities. 4. Competitive equilibrium and its basic welfare properties: Markets and prices. Welfare theorems. Pareto optima and social welfare optima. First-order conditions for Pareto optimality. Applications. 5. Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Sequential trade. Asset markets and the no arbitrage theorem. Sequential trade and incomplete markets. Imperfect information. 6. Basic principles of financial economics: The fundamental theorem of asset pricing. Mean-variance analysis.Core Documentation
A. Mas-Colell, M.D. Whinston and J.R. Green, Microeconomic Theory, Oxford University Press, 1995 (Chapters 1, 2, 3, 5, 6, 16, 19, Mathematical Appendix).Additional material will be provided during classes.