Advanced Microeconomics I

Lecture notes will be updated constantly. For typos and mistakes, please email me.

Syllabus

Part I: Math Review

Lecture 1: Sets, Relations and Orders

  • Write-ups: 1/19, 1/26

  • Additional Readings: [O] A.1, [D] 1.1, 1.2, 1.4, [JR] A1.1, A1.2

Lecture 2: Linear Algebra

  • Write-ups: 1/26

  • Additional Readings: [SB] Chapter 6,8,10,11; [O] Chapter F

  • Exercise 1

Lecture 3: Convexity

  • Write-ups: 2/2

  • Additional Readings: [O] A.4, G, [K] Appendix 3, [SB] 21, [JR] A1.4

Lecture 4: Real Analysis

  • Write-ups: 2/2

  • Additional Readings: [O] A.3-A.4, C.1, C.3, D, [K] Appendix 2, [D] 1.6-1.8

  • Exercise 2

Lecture 5: Differentiation

  • Write-ups: 2/2, 2/9

  • Additional Readings: [JR] A2.1, [SB] Chapters 2-5, 14, 16

Lecture 6: Smooth Optimizations

  • Write-ups: 2/9, 2/16

  • Additional Readings: [JR] A2.2-A2.4, [SB] Chapters 17-19, [K] Appendix 5

  • Exercise 3

Part II: Consumer Theory

Lecture 7: Utility Maximization

  • Write-ups: 2/16

  • Additional Readings: [D] Ch 2,4 [B] Ch 6 [JR] 1.1-1.3, 1.5 [K] Ch 3 [OR] 5.1-5.3

Lecture 8: Expenditure Minimization

  • Write-ups: 2/23

  • Additional Readings: [B] Ch 6 [JR] 1.4 [K] Ch 10

Lecture 9: Comparative Statics

  • Write-ups: 2/23

  • Additional Readings: [JR] 1.5, 2.1 [K] Ch 10, 11, [OR] 5.6

Lecture 10: Welfare

  • Additional Readings: [JR] 4.3, [K] 12.2

Lecture 11: Exercise

Assignment 1 (Due at 11:59 pm on 3/12)

Solution

Part III: Choice and Uncertainty

Lecture 12: Preference and Utility Presentation

  • Additional Readings: [D] 4.4-4.7, [JR] 1.2, [K] Ch 1 - 2, [OR] Ch 1,4

Lecture 13: Choices and Revealed Preference

  • Write-ups: 3/16

  • Additional Readings: [K] Ch 3 - 4, [OR] Ch 2, 5.5, [JR] 2.3

Lecture 14: Uncertainty and Expected Utility

  • Write-ups: 3/16, 3/23

  • Additional Readings: [K] Ch 5, [JR] 2.4, [OR] 3.1-3.4, [O] H.1

Lecture 15: Attitude Towards Risks

  • Write-ups: 3/23, 4/6

  • Additional Readings: [JR] 2.4, [OR] 3.5

Assignment 2 (Due at 11:59 pm on 4/9)

Solution

Part IV: General Equilibrium Theory

Lecture 16: Walrasian Economy

  • Write-ups: 4/6, 4/13

  • Additional Readings: [D] Ch 2,5, [B] Ch 2, 4.1-4.6

Lecture 17: Existence of Walrasian Equilibria

  • Write-ups: 4/13, 4/20

  • Additional Readings: [D] Ch 5, [B] Ch 4.7-4.9

Lecture 18: Efficiency of Walrasian Equilibria

  • Write-ups: 4/20

  • Additional Readings: [D] Ch 6, [B] Ch 3, 5

Lecture 19: Core

Assignment 3 (Due at 11:59 pm on 4/30. Only for those who present on May 4th, it is extended to 11:59 pm on 5/7.)

Solution

Part V: Topics

Lecture 20: Matching

Lecture 21: Arrow-Debreu Economy

  • Write-ups: 4/27

  • Additional Readings: [B] Chapter 7

Lecture 22: (5/4)

--------- 10 minutes break ---------

Lecture 23: (5/11)

--------- 10 minutes break ---------

Additional Reference:

  • For consumer and producer theory:
    [K] David M. Kreps, Microeconomic Foundations I: Choice and Competitive Markets (Princeton University Press, 2013)

[OB] Osobrne, M. and Rubinstein, A., Models in Microeconomic Theory (Open Book Publishers, 2020)

[JR] Geoffrey A. Jehle and Philip J. Reny, Advanced Microeconomic Theory (3rd edition, Prentice Hall, 2011)

  • For general equilibrium theory:
    [D] Gerard Debreu, Theory of value: An axiomatic analysis of economic equilibrium. (Yale University Press, 1959)
    [B] Truman Bewley, General Equilibrium Theory, Overlapping Generations Models, and Optimal Growth Theory (Harvard University Press, 2010)

  • For mathematics:
    [O] Efe OK, Real Analysis with Economic Applications (Princeton University Press, 2007)
    [SB] Carl Simon and Lawrence Blume, Mathematics for Economists (Norton, 1994)