Embed Size (px)
Citation preview
1
BOSTON COLLEGE DEPARTMENT OF ECONOMICS
Microeconomic Theory EC2201.01 MW 3pm
Matthew S. Rutledge Spring 2016
Campion 200
Email: [email protected] Phone: (617) 552-1874 Office Hours: Tuesdays 8-9am and Wednesdays 4:30-5:30pm and by appointment Office: Hovey House 201 Required Text: Jeffrey M. Perloff, Microeconomics, 7th edition. I was a reviewer on this book when they were updating it from the 6th edition (which should be very similar, if that helps in your purchasing decision). I found it to be a good read with a very attractive and well-organized structure, but particularly helpful were the “solved problems” that help the reader figure out how to find tricky-but-essential solutions. Supplemental Reading: I used to assign Frank’s Microeconomics and Behavior, which is a great read and extra-helpful for behavioral economics, but a little weaker on some of the more technical things we do in class. If you are looking for additional insight or extra problems, O’Neill Library has several other intermediate micro textbooks, usually on reserve: Katz and Rosen’s Microeconomics, Varian’s Intermediate Microeconomics: A Modern Approach, Pindyck and Rubinfeld’s Microeconomics, and a number of older volumes. These texts are a good resource if you want to see topics presented in a more formal, technical way. You are strongly encouraged to pay attention to, and bring to the class’s attention, policy debates and discussion in the popular press, including both mainstream news sites and economics/policy blogs (recommended: Vox, NY Times’ The Upshot and Paul Krugman’s blog, FiveThirtyEight, Marginal Revolution, Freakonomics, and many others). Real-world applications of theoretical principles make excellent exam questions. I will highlight particularly relevant material in class and on the course website.
Course Website: I’ll upload all Powerpoint slides, problem sets and solutions, and other material to the course’s Canvas site; please let me know if you have access issues once you are enrolled. Course Requirements and Grading: Midterm #1 (Monday, February 22): 25% Midterm #2 (Monday, April 4): 25% Final (Wednesday, May 4 during class): 32% Problem Sets, 6 x 3 points: 18%
2
The first midterm will cover consumer theory. The second midterm mostly will cover the theory of the firm, with some elements from the consumer side. The final exam (given during the final class time) is cumulative; though the focus will be on topics covered after the last midterm, these topics inherently require understanding from both the consumer and producer theories. All exams will be closed-book. There are six problem sets, each graded on a scale of 0 to 3. Submissions with serious flaws but showing sincere effort will earn one point. Submissions with some mistakes but showing basic understanding will earn two points. Submissions that are near perfect will earn three points. You may work in groups of up to four people; please submit only one set of answers per group, and write all names on the top. In-class discussion is integral to making this course interesting, informative, and enjoyable. Please come prepared to contribute your thoughts on how the theory we are outlining relates to the real world. I also hope that you feel comfortable asking questions; if something is uncertain in your mind, it likely is uncertain in other minds as well. Though class participation is not included in the above percentages, regular involvement in the discussion helps determine whether a borderline grade gets the higher or lower of the two options (e.g., an A- versus a B+). Academic Integrity Statement1 The academic enterprise at Boston College assumes and requires academic integrity, which in this course means that all your work on exams is your own, and that you were a substantial contributor to any problem sets on which your name appears. Violations of academic integrity will be reported to your class Dean and then reviewed by the College of Arts and Sciences Academic Integrity Committee. Consequences can be very serious. I urge you to review university policy and procedures, available under <academic integrity> at http://www.bc.edu/integrity. If you have any questions, please consult with me. Schedule: Date Topics and Requirements Perloff (7th ed) Chapters 1/20 Introduction and Math Review 1/25 Utility and Preferences 4.1-4.2 1/27 Consumer’s Optimum 4.3-4.4 2/1 Comparative Statics
Problem Set #1 due 5.2-5.3
2/3 Individual and Market Demand 2.1, 5.1 2/8 Elasticity 3.1-3.2 2/10 Uncertainty
Problem Set #2 due 17.1-17.2
2/15 Insurance Markets 17.3, 19, 20 2/17 Exceptions to the Rational Consumer 4.5
1 In the spirit of the enterprise, I should note that this section is copied word-for-word from Prof. Quinn’s Fall 2009 syllabus.
3
Model; Midterm Review 2/22 MIDTERM #1 2/24 Production 6 2/29 Cost Curves 7 3/2 Profit Maximization 8.1-8.2 3/14 Supply Curves 2.2, 3.3, 8.3-8.4 3/16 Competitive Equilibrium
Problem Set #3 due 2.3-2.4
3/21 Monopoly 11 3/23 Welfare Analysis and Taxes
Problem Set #4 due 2.5, 3.4, 9.2-9.4
3/30 General Equilibrium; Midterm Review
10.1
4/4 MIDTERM #2 4/6 Labor Supply 5.5 4/11 Labor Demand 15.1 4/13 Intertemporal Optimization 16.1-16.2 4/20 Externalities
Problem Set #5 due 18.1-18.5
4/25 Public Goods 18.6 4/27 Game Theory and Imperfect
Competition Problem Set #6 due
13, 14
5/2 Review 5/4 FINAL EXAM in class
