SubjectsSubjects(version: 861)
Course, academic year 2019/2020
  
Advanced Microeconomics - JEM003
Title: Advanced Microeconomics
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2017
Semester: winter
Points: 6
E-Credits: 6
Examination process: winter s.:
Hours per week, examination: winter s.:2/2 Ex [hours/week]
Capacity: 185 / 370 (185)
Min. number of students: unlimited
State of the course: taught
Language: English
Teaching methods: full-time
Additional information: http://ies.fsv.cuni.cz/en/syllab/JEM003
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: prof. Ing. Karel Janda, Dr., Ph.D., M.A.
Teacher(s): prof. Ing. Karel Janda, Dr., Ph.D., M.A.
Mgr. Veranika Makarevich
Mgr. Matěj Opatrný
Files Comments Added by
download Exam 2 results.xls Exam 2_Results Mgr. Veranika Makarevich
download Results_Exam_1.xlsx Exam 1_results Mgr. Veranika Makarevich
download Seminar 1_Preference and choice.pdf Seminar 1_Preference and Choice Mgr. Veranika Makarevich
Annotation -
Last update: prof. Ing. Karel Janda, Dr., Ph.D., M.A. (25.09.2017)
The course is divided into three parts. First, we quickly review the basic consumer theory and subsequently we provide the rigorous theory of risk which serves as fundament for financial economics. Second, we make an introduction to general equilibrium which is a basic ingredient in applied macroeconomic modeling. Third, the course introduces into key issues of asymmetric information and principle-agent problems.
Aim of the course -
Last update: prof. Ing. Karel Janda, Dr., Ph.D., M.A. (25.09.2017)

The course is divided into three parts. First, we quickly review the basic consumer theory and subsequently we provide the rigorous theory of risk which serves as fundament for financial economics. Second, we make an introduction to general equilibrium which is a basic ingredient in applied macroeconomic modeling. Third, the course introduces into key issues of asymmetric information and principle-agent problems.

Literature -
Last update: doc. PhDr. Martin Gregor, Ph.D. (26.09.2016)

A. Mas-Colell, M. Whinston, and J. Green: Microeconomic Theory, Oxford University Press, 1995.

Teaching methods -
Last update: prof. Ing. Karel Janda, Dr., Ph.D., M.A. (25.09.2017)

Lectures, seminars (including tutorials), homeworks and exams.

Requirements to the exam -
Last update: prof. Ing. Karel Janda, Dr., Ph.D., M.A. (18.11.2019)

 Exam dates and content: (preliminary, subject to possible change)

Exam 1: November 4, 2019 (MWG chapters 1, 2, 3)
Exam 2: November 18, 2019  (MWG 6)

Exam 3: December 2, 2019 (MWG 15,  19)
Exam 4: December 16, 2019 (MWG 15,  19, 13, 14)

There are no additional exams or make-up exams.

During the week of Exam 4, there is obviously no lecture or discussion session, there is only Exam 4 in that week.
Exams  will be conducted in room 109 (8:00-9:20). In the weeks of Exam 1, 2, 3, there will be a regular lecture instead of discussion session in the room 314 (9:30-10:50).

Syllabus -
Last update: prof. Ing. Karel Janda, Dr., Ph.D., M.A. (18.11.2019)

JEM003 - Advanced Microeconomics Fall 2019

Teachers: Karel Janda

Assistants: Matej Opatrny (Head TA), Veronika Makarevich

 


Literature: A. Mas-Colell, M. Whinston, and J. Green: Microeconomic Theory, Oxford University Press, 1995.Lecture: 8:00-9:20 room 109. Discussion Session: 9:30-10:50 room 314. There is no regular Discussion Session in the time slot 11:00 - 12:20.  This time slot 11:00 - 12:20 may be used for make-up lectures or make-up discussion sessions.

Contact information:
E-mail: Karel-Janda@seznam.cz 
Office Hours: 
Monday  9:30-11:30, room 408, Opletalova 26;
Tuesday 14:15-16:15  room 182NB, W. Churchilla Square 4.
Explanations:
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.
I have no office hours during the following periods: October 15, December 23-February 11.
 

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. This part of the course also provides the introduction to the rigorous theory of uncertainty and risk. This theory serves as fundamental basis for the finance theory. Second part of the course covers an introduction to general equilibrium. The relevance of the general theory to the modern finance theory is emphasized. The third part of course deals with information asymmetry (moral hazard, adverse selection).

Topics Covered 
Preferences and Choice 
- Preference Relation. 
- Choice Rules. 
- The Relation between Preference Relations and Choice Rules. 
Consumer Choice. 
- 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. 
- Integrability.
- Strong Axiom of Revealed Preferences. 
Uncertainty.
- Expected Utility Theory
- Money Lotteries and Risk Aversion
- Comparison of Payoff Distributions in Terms of Return and Risk
-State Dependent Utility, Subjective Probability Theory
General Equilibrium.
- Exchange.
- Welfare theorems.
- Production.
- General Equilibrium under uncertainty.

Asymmetric information.


Expected timing:
Lectures 1-2: Mas-Colell, Whinston, Green (MWG) chapters 1, 2.
Lecture 3: MWG chapter 3
Lectures 4-6: MWG chapter 6
Lecture 7: MWG chapter 15.B
Lecture 8: MWG chapters 15. C, 19
Lectures 9-10: MWG chapter 19

Lectures 11-12: MWG chapters  13, 14. (subject to adjustment according to time available)

 Exam dates and content: (preliminary, subject to possible change)

Exam 1: November 4, 2019 (MWG chapters 1, 2, 3)
Exam 2: November 18, 2019  (MWG 6)

Exam 3: December 2, 2019 (MWG 15,  19)
Exam 4: December 16, 2019 (MWG 15, 19, 13, 14)

There are no additional exams or make-up exams.

During the week of Exam 4, there is obviously no lecture or discussion session, there is only Exam 4 in that week.
Exams  will be conducted in room 109 (8:00-9:20). In the weeks of Exam 1, 2, 3, there will be a regular lecture instead of discussion session in the room 314 (9:30-10:50). 

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.

The students are evaluated according to written exams.
There will be 4 exams available to take for this class. Only two exams will be used for determining your grade. These will be always the exam with your higher score from Exams 1 and 2 and from Exam 3 and 4. Each of these two exams may give you up to 50 points. So totally you may obtain up to 100 points.
90+ to 100 is A, 80+ to 90 is B, 70+ 80 is C, 60+ to 70 is D, 50+ to 60 is E, under 50 is Fail (F). This means that borderline results are assigned the lower grade (e.g. 90 is B).

(Example: Student obtains the following points: Exam 1=42 points. Exam 2 = 45 points, Exam 3 = 40 points, Exam 4 = 0 points. His score is 45 (best score from Exams 1 and 2) +40 (best score from Exams 3 and 4). So the total score is 85 points with a grade B).


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.

Entry requirements -
Last update: doc. PhDr. Martin Gregor, Ph.D. (26.09.2016)

No entry requirements for Master students.

 
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