# 040055 KU KU Applied Microeconomics (MA) (2022W)

Continuous assessment of course work

## Labels

ON-SITE

## Registration/Deregistration

**Note:**The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

- Registration is open from
**Mo 12.09.2022 09:00**to**Fr 23.09.2022 12:00** - Registration is open from
**We 28.09.2022 09:00**to**Th 29.09.2022 12:00** - Deregistration possible until
**Fr 14.10.2022 23:59**

## Details

max. 100 participants

Language: English

### Lecturers

### Classes (iCal) - next class is marked with N

Tutorial:

DI 25.10.2022 09.45-11.15 Ort: Hörsaal 5 Oskar-Morgenstern-Platz 1

Erdgeschoß;

DI 08.11.2022 09.45-11.15 Ort: Hörsaal 14 Oskar-Morgenstern-Platz 1

2.Stock;

DI 06.12.2022 und 10.01.2023 09.45-11.15 Ort: Hörsaal 14

Oskar-Morgenstern-Platz 1 2.Stock;

MO 23.01.2023 09.45-11.15 Ort: Hörsaal 12 Oskar-Morgenstern-Platz 1

2.Stock

Monday
03.10.
16:45 - 18:15
Digital

Thursday
06.10.
11:30 - 13:00
Digital

Monday
10.10.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
13.10.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
17.10.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
20.10.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
24.10.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Tuesday
25.10.
09:45 - 11:15
Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß

Thursday
27.10.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
31.10.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
03.11.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
07.11.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Tuesday
08.11.
09:45 - 11:15
Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock

Thursday
10.11.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
14.11.
16:45 - 18:15
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
21.11.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
24.11.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
28.11.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Monday
05.12.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Tuesday
06.12.
09:45 - 11:15
Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock

Monday
12.12.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
15.12.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
09.01.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Tuesday
10.01.
09:45 - 11:15
Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock

Thursday
12.01.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
16.01.
16:45 - 18:15
Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Thursday
19.01.
11:30 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Monday
23.01.
09:45 - 11:15
Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock

Monday
06.03.
11:30 - 13:00
Hörsaal 17 Oskar-Morgenstern-Platz 1 2.Stock

Seminarraum 6 Oskar-Morgenstern-Platz 1 1.Stock

Seminarraum 6 Oskar-Morgenstern-Platz 1 1.Stock

## Information

### Aims, contents and method of the course

### Assessment and permitted materials

There will be two written exams (in person except for justified reasons), each worth 40%. In addition, there will be problem sets and readings to discuss. The grade of these will be 20%.The dates for the exams are

Mid-Term:

Monday, November 14, 16.45 – 18.15 h, Hörsaal 1

End-Term:

Tuesday, January 24, 13.15 – 14.45 h, Hörsaal 1Both the final and the midterm may be retaken in February, but only if you took part in the original exam. If the exam is retaken, the grade is automatically replaced by the new exam.

Mid-Term:

Monday, November 14, 16.45 – 18.15 h, Hörsaal 1

End-Term:

Tuesday, January 24, 13.15 – 14.45 h, Hörsaal 1Both the final and the midterm may be retaken in February, but only if you took part in the original exam. If the exam is retaken, the grade is automatically replaced by the new exam.

### Minimum requirements and assessment criteria

The grading will be as follows.

>85%, 1

70-85%, 2

60-70%, 3

50-60%, 4

less than 50%, 5.

>85%, 1

70-85%, 2

60-70%, 3

50-60%, 4

less than 50%, 5.

### Examination topics

Topics.

1. Preferences and choice. Rationality. Demand Theory. Aggregation.

2. Allocations. Fairness and Efficiency. Exchange Economies.

3. Competitive Equilibrium and Welfare Theorems in Exchange Economies. Partial Equilibrium Analysis.

4. Production. Technology and Cost. Misallocation and Trade. Firm Optimization. Perfect and Imperfect Competition.

4. Labor markets. Heterogeneous workers. Monopsony Power. Policy Evaluation.

5. Market Failures. Externalities. Information Asymmetries.

1. Preferences and choice. Rationality. Demand Theory. Aggregation.

2. Allocations. Fairness and Efficiency. Exchange Economies.

3. Competitive Equilibrium and Welfare Theorems in Exchange Economies. Partial Equilibrium Analysis.

4. Production. Technology and Cost. Misallocation and Trade. Firm Optimization. Perfect and Imperfect Competition.

4. Labor markets. Heterogeneous workers. Monopsony Power. Policy Evaluation.

5. Market Failures. Externalities. Information Asymmetries.

### Reading list

There is no single book that covers the topics in this course. I have prepared a reference list with three main strands.

1. Resources to understand key concepts:

Varian's 'Intermediate Microeconomics' provides a comprehensive and easily accessible introduction to the main concepts of the course, while his (Varian's) Microeconomic Analysis provides a deeper level coverage of the same topics. The level of the course will lie somewhat in between these two books.

Ariel Rubinstein's book is available online and is at a similar level as Varian's Microeconomic Theory (you can download it here https://www.openbookpublishers.com/product/1171)

The connection with empirical work in these books is scant; a good reference in this regard is this collection of lecture notes (https://ocw.mit.edu/courses/economics/14-03-microeconomic-theory-and-public-policy-fall-2016/lecture-notes/ )

2. Questions-Based Books:

Pancs' "Lectures in Microeconomics" is more advanced and has a more modern focus. We will follow the "questions approach" in this book but at a lower level of sophistication. The CORE-Econ Project (available here https://www.core-econ.org/) provides a good introduction to some of the topics but a more superficial level.

3. Mathematical Tools: For students who are interested in obtaining a deep understanding of economic theory but have a weaker math background, I recommend Simon and Blume's "Mathematics for Economists" (in particular Chapters 1-5 and 14-17). For a very basic introduction to the mathematical tools that we will use, see the first chapter of Van Zandt's book ( https://faculty.insead.edu/vanzandt/teaching/FPM-Aug2012.pdf )4. In addition, these are required readings for specific classes (to be announced exactly when)

'The Use of Knowledge in Society' F. Hayek, AER 1945

'On The Economic Theory of Socialism' O. Lange, Restud 1936

"Why Surfers Should be Fed: The Liberal Case for an Unconditional Basic Income" Van Parijs, Philosophy and Public Affairs. 1991

'Lessons from the Kibbutz on the equality-incentives trade-off'. R. Abramitzky, JEP, 2011.

'What money can't buy: the moral limits of markets' The Tanner Lectures on Human Values, Oxford University, 1998 (also available as a book)

'Repugnance as a constraint to markets' A. Roth, JEP, 2007

'The Problem of Social Cost' by R. Coase, JLE, 1972. (pp. 1-28)

1. Resources to understand key concepts:

Varian's 'Intermediate Microeconomics' provides a comprehensive and easily accessible introduction to the main concepts of the course, while his (Varian's) Microeconomic Analysis provides a deeper level coverage of the same topics. The level of the course will lie somewhat in between these two books.

Ariel Rubinstein's book is available online and is at a similar level as Varian's Microeconomic Theory (you can download it here https://www.openbookpublishers.com/product/1171)

The connection with empirical work in these books is scant; a good reference in this regard is this collection of lecture notes (https://ocw.mit.edu/courses/economics/14-03-microeconomic-theory-and-public-policy-fall-2016/lecture-notes/ )

2. Questions-Based Books:

Pancs' "Lectures in Microeconomics" is more advanced and has a more modern focus. We will follow the "questions approach" in this book but at a lower level of sophistication. The CORE-Econ Project (available here https://www.core-econ.org/) provides a good introduction to some of the topics but a more superficial level.

3. Mathematical Tools: For students who are interested in obtaining a deep understanding of economic theory but have a weaker math background, I recommend Simon and Blume's "Mathematics for Economists" (in particular Chapters 1-5 and 14-17). For a very basic introduction to the mathematical tools that we will use, see the first chapter of Van Zandt's book ( https://faculty.insead.edu/vanzandt/teaching/FPM-Aug2012.pdf )4. In addition, these are required readings for specific classes (to be announced exactly when)

'The Use of Knowledge in Society' F. Hayek, AER 1945

'On The Economic Theory of Socialism' O. Lange, Restud 1936

"Why Surfers Should be Fed: The Liberal Case for an Unconditional Basic Income" Van Parijs, Philosophy and Public Affairs. 1991

'Lessons from the Kibbutz on the equality-incentives trade-off'. R. Abramitzky, JEP, 2011.

'What money can't buy: the moral limits of markets' The Tanner Lectures on Human Values, Oxford University, 1998 (also available as a book)

'Repugnance as a constraint to markets' A. Roth, JEP, 2007

'The Problem of Social Cost' by R. Coase, JLE, 1972. (pp. 1-28)

## Association in the course directory

*Last modified: Th 11.05.2023 11:27*

The course will consist of theory sections (lecture form) and practical sessions (recitation and discussions). The course will take place online (due to covid restrictions). All the materials will be available in Moodle before the class.

For those students who partake in the Masters in Applied Economics, there will be a separate "exercise course" (Ubung). This course is complementary but not necessary to follow it. It will consist of "empirical projects" that would enable you to relate the concepts discussed here with real-world phenomena.