Post-Graduate School. Module 3: Microeconomics 1
“Post-Graduate School”
Module 3: Microeconomics-1
February 8-12, 2010.
Instructor: Mykhaylo Salnykov, BEROC salnykov@beroc.by
Place:
Belarusian State University, Minsk Marksa str. 31 (Economic Department)
- Monday, February 8, 2010
Lecture 1: Introduction to mathematics of microeconomic analysis. First and second order conditions for optimization. Unconstrained optimization. Constrained optimization. Envelope theorem. Kuhn-Tucker conditions.
Lecture 2: Specification of technology, its representations. Usual assumptions: monotonicity, convexity, regularity. Technical rate of substitution. Elasticity of substition. Epical technologies: Cobb-Douglas, Leontief, Constant RTS technology, CES production function. Returns to scale. Homogeneous and homothetic technologies.
- Tuesday, February 9, 2010
Lecture 3: Profit maximization. Properties of factor demand and output supply functions. Profit function. Properties of the profit function. Supply and demand functions from the profit function. Hotelling’s lemma.
Lecture 4: Cost minimization. Calculus analysis of cost minimization. Conditional factor demand functions. Cost function. Average and marginal cost. The geometry of cost. Long run and short run costs. Properties of cost functions. Shephard’s lemma.
If time permits: Duality
- Wednesday, February 10, 2010
Lecture 5: Consumer preferences and their properties. Marginal rate of substitution. Utility function and its existence. Consumer behaviour. Consumer behavior.
Lecture 6: Indirect utility. Expenditure function. Hicksian and Marshallian demand. Some important identities.
- Thursday, February 11, 2010
Lecture 7: Income expansion path. Engel curves. Slutsky equation. Income effect and substitution effect.
Lecture 8: Introduction of endowment to budget constraint. Aggregation issues. Pareto Optimality. Introduction to general equilibrium. Edgeworth box. Walrasian equilibrium.
- Friday, February 12, 2010
Lecture 9: Walras’ law. Market clearing. Free goods. The first theorem of welfare economics.
Lecture 10: Second theorem of welfare economics. Welfare maximization.
If time permits: Introduction of production to the general equilibrium framework.
Monday, February 8, 2010
Room 404
Lecture 1: 17:25
Lecture 2: 18:55
Tuesday, February 9, 2010
Room 404
Lecture 3-4: 11:15
Wednesday, February 10, 2010
Room 404
Lecture 5: 18:55
Lecture 6: 20:15
Thursday, February 11, 2010
Room 404
Lecture 7: 17:25
Lecture 8: 18:55
Friday, February 12, 2010
Room TBC
Lecture 9: 14:25
Lecture 10: 15:55
Note: the schedule is not binding, but it generally represents the content and the order of topics covered. Depending on the speed of the course, some advanced material may be left for self-study.
