Baisc Microeconomics (Graduate School of Public Policy)
Japanese|English
Correspondence
Toshihiro Matsumura, Associate Professor, Institute of Social Science, University of Tokyo
Shinjiro Miyazawa (Teaching Assistant, D1), Graduate Schhol of Economics, University of Tokyo
Course description
Microeconomic Analysis is one of the fundamental skills for analyzing public policies including
both economic and social policies.
It is also quite useful when we design welfare-improving laws, rules and organizations.
The purpose of the course is to develop the skills of microeconomic modeling and principles
of microeconomic theory used in policy analysis.
How to use basic techniques of microeconomics in real policy analysis is the main focus of this course.
We cover classical theory of consumer choice and productions, market equilibrium analysis,
welfare economics, and market failures. We also cover informational economics and the non-cooperative game theory.
Grades
Grades will be based on mid-term exam (30\%), final exam (40\%),
exercises and report (15\%), class participation (15\%).
Textbook
Lee S Friedman, The Microeconomics of Public Policy Analysis, Princeton University
Press
References
Joseph E. Stiglitz, Economics, Norton
Hal R. Varian, Intermediate Microeconomics, Norton
Hal R. Varian, Microeconomic Analysis, Norton
Serge Lang, A First Course in Calculus, Addison-Wesley
Avinash K. Dixit, Optimization in Economic Theory, Oxford University Press
Robert Gibbons, Game Theory for Applied Economists, Princeton University Press
Schedule (subject to change as needed)
1 (4/7) Introduction: demand and supply (Chapters 1 and 2)
2 (4/12) Basic Skills for Calculations
3 (4/14) Basic Skills for Optimization
4 (4/19) Introduction to the Game Theory
5 (4/21) Utility Maximization and Efficiency (Chapter 3)
6 (4/26) Efficiency, Equity, and Fairness (Chapter 3)
7 (4/28) Individual Choice and the Analysis of Welfare Programs (Chapter 4)
8 (5/10) The Analysis of Equity Standard (Chapter 5)
9 (5/12) The Compensation Principle and Benefit Measures (Chapter 6)
10 (5/17) Uncertainty and Public Policy (Chapter 7,8)
11 (5/19) The Cost Side of Policy Analysis (Chapter 9)
12 (5/24) Imperfect Competition and Economic Welfare (Chapter 10)
13 (5/26) Public and Nonprofit Organization (Chapter 11)
14 (5/31) Perfect Competition and the First Fundamental Theorem of Welfare
Economics (Chapter 12)
15 (6/2) Tax Policy (Chapter 12)
16 (6/7) Midterm Examination
17 (6/9) Economic Regulations and Public Policies (Chapter 13--14)
18 (6/14) Market Failure and Government Failure (Chapter 15)
19 (6/16) The Problem of Public Goods (Chapter 16)
20 (6/21) Externalities and Policies to Internalize Them (Chapter 17)
21 (6/23) Industry Regulation (Chapter 18)
22 (6/28) Investments and Capital Markets (Chapters 8 and 19)
23 (6/30) Incomplete Information and Market Failure (Chapter 20)
24 (7/5) Commitment and the Credibility of Public Policy
25 (7/7) Trust, Reputation and Repeated Game
26 (7/12) Incomplete Information Game and Public Policy
27 (7/14) Final Examination
Materials and Exercises
dvi files (for TeX users only) pdf files (for other users)
material 1.dvi
material 1.pdf
material 2.dvi
material 2.pdf
material 3.dvi
material 3.pdf
material 4.dvi
material 4.pdf
material 5.dvi
material 5.pdf
material 6.dvi
material 6.pdf
material 7.dvi
material 7.pdf
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