Microeconomic Analysis and Applications, 15 Credits

Contents

The course consists of two modules; one focusing on theory and the other focusing on applications.

Module 1: Microeconomic Analysis (7,5 hp)

The module focuses on central aspects of microeconomics at an advanced level. One example is how consumer theory can help us to derive demand functions for different goods and how different restriction in the assumption regarding utility- and profit maximization as well as cost minimization puts on the functional form of the demand and supply functions. The second part of the module will give the students an understanding of how microeconomic theories and concepts can be used for welfare analysis. The module is also discussing decision-making under uncertainty.

Module 2: Applied Microeconomics (7,5 hp)

The purpose of this module is to introduce students to the practice of empirical economics. This module complements the material presented in the module Microeconomic Analysis. This means that at the end of the course students will be able to reproduce the many steps necessary to complete the estimation of four distinct common economic models. The module will provide students with the opportunity to explore the empirical methods used by economists when they approach empirical questions.
The key focus in this module is the use of data to measure/estimate quantities that are economically meaningful, i.e. multipliers, elasticities, effects etc.
The students will estimate four models among topics such as:
a) the Engel Curve and the Almost Ideal demand system,
b) the Supply and Demand model on a single market,
c) measuring the Elasticity of substitution between capital and labour,
d) a model of Female Labour Supply and Labour Market Participation,
e) a Multinomial Logit Model of Discrete Choice,
f) a Mincer Equation,
g) Expected Utility.

Expected learning outcomes

Module 1: Microeconomic Analysis (7,5 hp)
After completion of this module, students should be able to: 

Knowledge and understanding

• Describe the economically relevant aspects of firm technology and consumer utility.
• Understand the meaning and uses of duality in the theory of the firm and consumer theory.
• Describe and exemplify how different assumptions on utility- and profit maximization and cost minimization affect the functional form of the supply and demand functions.

Competence and skills

• Use consumer theory to derive demand functions and perform comparative static analysis. 
• Derive the firm supply- and demand functions by profit maximization and cost minimization and perform comparative static analysis.
• Conduct advanced analyses on supply and demand on markets for different goods. 
• Perform advanced welfare analyses and analyse decision making under uncertainty

Module 2: Applied Microeconomics (7,5 hp)
After completion of this module, students should be able to:

Knowledge and understanding

• demonstrate a thorough understanding of the practical issues related to the measurement of economic responses using economic data,
• assimilate the methodological information presented in scientific publications,

Competence and skills

• select the appropriate research methods and data collection methods in relation to a specific research question, and convincingly argue for the choice of research method,
• use an appropriate statistical software to conduct the analysis of empirical data,
• determine the magnitude of the uncertainty that relates to specific measurements/estimates,
• draw conclusions and formulate practical recommendations to relevant stakeholders,
• communicate the main arguments, contents, and results of an empirical study in a scholarly manner.

Required Knowledge

90 credits of which 75 credits in economics including 15 credits bachelor courses (G2F). Additionally, Mathematical Economics I D7 or the equivalent. Proficiency in English equivalent to the Swedish upper secondary course English 6.

Form of instruction

The teaching is conducted in the form of lectures and supervised computer laboratory session.

Examination modes

The examination of module 1 consists of a written exam assessed according to the scale Fail, Pass and Pass with Distinction (U/G/VG).

The examination of module 2 comprises of written assignments and presentations, yielding an assessment of the scale Fail, Pass and Pass with Distinction (U/G/VG). The results from assignments and presentations are only valid during the current semester.

The following grading system will be used for the course: Fail (Underkänd), Pass (Godkänd) or Pass with Distinction (Väl godkänd). The grade Pass on the course is awarded when the student has passed both modules. The grade Pass with Distinction on the course requires Pass with Distinction on both modules. A student who has passed an examination may not undergo a re-examination for a higher grade.

A student who does not pass at the time of the written examination will be offered an additional examination opportunity in close connection with this. Subsequent examination opportunities are usually given in connection with the course being offered next time. In addition, an extra examination opportunity is arranged every academic year before the start of the fall semester.

When a student has failed an examination on two occasions, he or she has the right to ask for another examiner. A written request for an alternative examiner should be handed to the Director of Studies no later than two weeks before the next examination opportunity.

Exceptions from examination form as stated in the syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the examination form should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on the adapted examination form. The decision must then be notified to the student.

Credit transfer
Academic credit transfers are according to the University credit transfer regulations.