B2201 - MODELING INDIVIDUAL BEHAVIOUR

Conoscenze e abilità da conseguire

At the end of the class, the student has a working knowledge of the basic tools and results of the classical microeconomic theory for perfectly competitive environments. In particular, the class focuses on: - Consumer choice: utility maximization, expenditure minimization and the revealed preference approach. - Choice under uncertainty and insurance decisions. - Firm choice: profit maximization and cost minimization. Finally, the student is able to apply these theoretical tools to econometric analyses.

Contenuti

ORGANIZATION OF LECTURES:

The course is organized with all lectures taught in presence. Exams are in presence too.

COURSE CONTENT:

PART I: Consumer behavior
1. Utility maximization
2. Expenditure minimization
3. Duality and comparative statics
4. Decisions under uncertainty: Expected utility theory

PART II: Firm behavior
5. Technology and production function
6. Profit maximization
7. Cost minimization
8. Cost functions, duality

Testi/Bibliografia

The main textbook is Jehle G.A. and P. Reny: "Advanced Microeconomic Theory, Prentice Hall, 2010.

Further readings:

• D.M. Kreps: "A Course in Microeconomic Theory", Prentice Hall, 1990
• A. Mas-Colell, M.D. Whinston, J.R. Green:"Microeconomic Theory", Oxford University Press, 1995 (more advanced)
• H. R. Varian: "Microeconomic Analysis", third Edition 1992, W.W. Northon & Co. Inc.

Slides and digital boards etc. can be found on Virtuale

Metodi didattici

Lectures and tutorials.

As for mathematical prerequisites, a good knowlwdge of the following topics is needed:

• linear algebra
• functions of many variables
• differential calculus
• optimization subject to constraints

Students who lack such prerequisites are invited to catch up as soon as possible by attending the crash-course in Mathematics and by studying the mathematical appendices of the above-listed texts.

Modalità di verifica e valutazione dell'apprendimento

The course grade will be determined by a final written examinamination and by problem sets assigned to groups of students during the course. The problem sets will account for 30% of the final grade, and the final exam will account for the remaining 70%.

The final exam will consist of 2/3 of analytical exercises and 1/3 of theoretical questions.

The problem sets will consist of analytical exercises only similar to the ones solved in class by the tutor of the course.

The final mark is graduated as follows:
- <18: failed
- 18: sufficient
- 19-23: satisfactory
- 24-26: good
- 27-29: very good
- 30 e lode: excellent

Strumenti a supporto della didattica

Theory will be complemented by tutorials to be added to the ordinary time schedule.

Orario di ricevimento

Consulta il sito web di Nadia Burani