The course deals with some classical topics of microeconomics at the level of a master program. Topics include consumer and production theory, choice under uncertainty (portfolio and insurance decisions), aggregation, exchange of commodities and of financial assets, general competitive equilibrium (existence and welfare properties). Its main goal is to provide students with those notions and methodologies that are required to successfully continue their studies in a doctoral program or to pursue their career as economists in the private sector or in a public institution.
Curriculum
teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Mutuazione: 21210235 Advanced Microeconomics in Scienze Economiche LM-56 TIRELLI MARIO, SALUSTRI FRANCESCO
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Final, written exam to be taken in class (closed-book) teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Mutuazione: 21210235 Advanced Microeconomics in Scienze Economiche LM-56 TIRELLI MARIO, SALUSTRI FRANCESCO
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Closed-book, in-class exam. teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Mutuazione: 21210235 Advanced Microeconomics in Scienze Economiche LM-56 TIRELLI MARIO, SALUSTRI FRANCESCO
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Final, written exam to be taken in class (closed-book) teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Mutuazione: 21210235 Advanced Microeconomics in Scienze Economiche LM-56 TIRELLI MARIO, SALUSTRI FRANCESCO
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Closed-book, in-class exam. teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Final, written exam to be taken in class (closed-book) teacher profile teaching materials
1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 Basic principles of financial economics:} The fundamental theorem of asset pricing. Mean-variance analysis.
H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Programme
Part 1: Consumer and production theory1.1 Consumer theory: Classical demand theory (budget constraint, preferences, utility, consumption demand, indirect utility, expenditure function, welfare evaluation, equivalent and compensating variation, axioms of revealed preferences).
1.2 Production theory: Production sets. Profit maximization and cost minimization. The geometry of costs.
Part 2: Choice under uncertainty
2.1 Theory: Lotteries. Preferences over lotteries. Expected Utility Theory. Money lotteries and risk aversion. Comparison of payoff distributions in terms of returns and risk. Subjective probabilities.
2.2 Applications: insurance and portfolio choice.
Part 3: Aggregation
3.1 Demand aggregation.
3.2 Supply aggregation.
Part 4: General competitive equilibrium and its welfare properties
4.1 Simple economies: the Edgworth box, 1 producer \& 1 consumer economy, 2X2 economy.
4.2 Pareto optimality and social welfare optima: feasibility, Pareto optimal problem, welfare function, Pareto frontier.
Part 5: Topics
5.1 The positive theory of equilibrium Existence, uniqueness.
5.2 Competitive equilibrium under uncertainty: Markets for contingent commodities. Arrow-Debreu equilibrium. Markets for assets and insurance policies. Back to welfare properties of competitive equilibria. Sequential trade and incomplete markets.
5.3 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, 1995H. Varian, Microeconomic Analysis, WW Norton and co. New York, III edition.
Type of evaluation
Closed-book, in-class exam.