Advanced Microeconomics I

Syllabus

January 17th Logic and Set

Readings: Lecture 1 (Section 1, 2.1), Supplement on Logic (Section 1.1 - 1.11)

January 31st Linear Structure

Readings: Supplement on Logic (Section 1.12), Lecture 2 (Section 1, 2.1), Lecture 3 (Section 1)

February 7th Convexity, Farkas' Lemma and No Arbitrage Theorem

Readings: Lecture 1 (Example 7),  Lecture 3 (Section 2), Supplement on Farkas' Lemma

February 14th Set Topology and Differentiability

Readings: Lecture 4, Lecture 5

February 21st Smooth Optimization - Uncontrainted and Equality Constraints

Readings: Lecture 1 (Section 3.6), Lecture 2 (Section 1.2), Lecture 5 (Section 2.2.1, 2.3, 2.4), Lecture 6 ( Section 1 and 2.1)

February 28th Smooth Optimization - KKT method and Shadow value of Money

Readings: Lecture 6 (Section 2)

March 7th Consumer's Problem

Readings: Lecture 7 (Section 1, 2.1)

March 14th  Utility Maximization and Cost Minimization

Readings: Lecture 7 (Section 2 -3), Lecture 8, Lecture 9 (Section 1-2)

March 28th Comparative Statics and Welfare implications, Relation

Readings: Lecture 9, 10, Lecture 1 (3.1 - 3.3)

April 11th Preorder and Preference

Readings: Lecture 1 (Section 3), Lecture 12 (Section 1, 2)

April 18th Utility Representation and Revealed Preference

Readings: Lecture 12 (Section 2 - 4), Lecture 13 (Before example on page 3)

April 25th Revealed Preference and Model of Uncertainties

Reading: Lecture 13, Lecture 14 (Section 1,2)

May 2nd Risk Attitude

Readings: Lecture 15

May 9th Axiomization of expected utility and Savage's subjective probability

Readings: Lecture 14 (Section 3,4,6,7 - excluding the theorem in section 3)

Topics

1. Farkas' Lemma and the No-Arbitrage Theorem (February 7th)

2. Envelope Theorem and Auctions (February 28th)

3. Money Metric (March 28th)

4. Arrow's Impossibility Theorem (April 11th)

5. Consumption Technology (April 11th)

6. Rosen-Roback Model on Spacial Factors (April 11th)

7. WARP as the law of demand - See section 3 in Notes 13 (April 18th)

8. Optimal Auction Design (April 18th)

9. The 2 by 2 by 2 Heckscher-Ohlin Model (April 18th)

10. The St. Petersburg Paradox - See section 5 of Notes 14 (April 25th)

11. Demand for Money (April 25th)

12. Social Choice: Incompatibility between Liberalism and Optimality (April 25th)

13. Capital Asset Pricing Model (May 2nd)

14. Turnpike Theorem in Optimal Growth (May 9th)

15. Stable Marriage Problem (May 9th)

16. Tiebout Tax (May 9th)

Final Exam May 11 - 13