JEM003 - Advanced Microeconomics
|Status:||CFS - core
Masters - all
Masters - core
MEF - core
Semester - winter
|Course supervisors:|| prof. Ing. Karel Janda M.A., Dr., Ph. D., RWE Chair
|Teachers:|| prof. Ing. Karel Janda M.A., Dr., Ph. D., RWE Chair
|Assistants:|| Mgr. Vyacheslav Lypko
Oksana Melikhova Ph.D.
|Schedule:||Lecture: 8:00-9:20 room 109. Discussion Session: 9;30 - 10:50 room 314. There is no Discussion Session in the time slot 11:00 -12:20 but you may be assigned to exams during this time slot.|
|Literature:||A. Mas-Colell, M. Whinston, and J. Green: Microeconomic Theory, Oxford University Press, 1995.|
Monday 9:30-11:30 room 408, Opletalova 26;
Wednesday 9:00-10:50 room 182NB, W. Churchilla Square 4.
W.Churchilla Square 4 is the main building of University of Economics, Prague.
Opletalova 26 is the building of Institute of Economic Studies of Charles University.
On Wednesday December 5 I will not be available during my office hours.
About the class:
First part of the course provides a rigorous, mathematically formulated theory of consumer choice in the non-strategic setting. It is essentially a review and extension of intermediate micro in a more rigorous form. Second part of the course provides the introduction to the rigorous theory of uncertainty and risk. This theory serves as fundamental basis for the finance theory. Third part of the course covers an introduction to general equilibrium. The relevance of the general theory to the modern finance theory is emphasized.
Preferences and Choice
- Preference Relation.
- Choice Rules.
- The Relation between Preference Relations and Choice Rules.
- Consumption Set.
- Competitive Budgets.
- Demand Functions and Comparative Statics.
- Weak Axiom of Revealed Preferences and Law of Demand.
Classical Demand Theory.
- Basic Properties of Preference Relations.
- Preference and Utility.
- The Utility Maximization Problem.
- The Expenditure Minimization Problem.
- Relationship between Demand, Indirect Utility and Expenditure Functions.
- Welfare Evaluation of Economic Changes.
- Strong Axiom of Revealed Preferences.
- Expected Utility Theory
- Money Lotteries and Risk Aversion
- Comparison of Payoff Distributions in Terms of Return and Risk
- State Dependent Utility, Subjective Probability Theory
- Welfare theorems.
- General Equilibrium under uncertainty.
Lecture 1: Mas-Colell, Whinston, Green (MWG) chapter 1
Lecture 2: MWG chapter 2
Lectures 3-5: MWG chapter 3
Lectures 6-9: MWG chapter 6 In the case of missing lectures (holidays etc.) the number of lectures devoted to MWG chapter 6 will be decreased so that we will have time to cover the General Equilibrium part of the class (MWG chapters 15 and 19)
Lecture 10: MWG chapter 15.B
Lecture 11: MWG chapters 15. C, 19
Lectures 12-13: MWG chapter 19
|Examination dates:||Exam 1: October 29
Exam 2: November 12
Exam 3: December 3
Exam 4: December 17
Exams will be conducted in room 314 (9:20-11:00) and room 109 (10:50-12:30). You will be assigned to one of these rooms by your teaching assistant. You will learn your room assignment before Exam 1.
Libraries, teaching texts availability:
There are libraries with books relevant to our class both at University of Economies and Institute of Economic Studies. I asked the librarians at Institute of Economic Studies to put one copy of the main textbook for our class on reserve. In addition, the best economic library in Prague is at CERGE-EI on Politickych veznu 7 street. The CERGE-EI library has all the books relevant for our class, some of them available for take-home loans.
|Course requirements:||The students are evaluated according to written exams.
There will be 4 exams available to take for this class. 2 exams with highest score will determine your score.
I plan to use relative performance approach to the grading (that is, "grading on the curve"). This means in particular that the position of any student "on the curve" almost always is not sure up to the time of last test being taken.
Cheating or other academic dishonesty during exam implies 0 for a particular exam and 10 points taken away from total in the case of slight dishonesty (20 points in the case of serious dishonesty). Any communication among the students during the exam is considered as cheating. Therefore during the exam communicate only with the exam supervisor. You may take watch and simple calculator for exams. Do not take any mobile phones or any other electronic devices for exams.
|Downloadable:||Exam Room Assignments
Final grades+exam 4 results