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2020/2021

Economics I

Code: 40095 ECTS Credits: 15
Degree Type Year Semester
4313805 Economic Analysis OB 1 1
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Francisco Obiols Homs
Email:
Francesc.Obiols@uab.cat

Use of Languages

Principal working language:
english (eng)

Teachers

Xavier Vilà Carnicero
Christopher Busch

Prerequisites

No specific prerequisits

Objectives and Contextualisation

This  module  covers  the  first  part  of  the  core  in  modern  macroeconomics  and  microeconomics.  This  module  introduces,  in  a  formal  and  analytical  way,  the  basic  principles  of  macroeconomics  and  microeconomics.  The  student  learns  how  to  analyze  economic  problems  and  derive  their  implications  using  techniques  and  tools  that  are  typical  of  mathematical  sciences.  Microeconomics  focuses  both  on  consumer  and  production  decision  theory.  Macroeconomics  focuses  on  advanced  analytical  tools  that  are  necessary  for  the  analysis  of  dynamic  problems.   

Competences

  • Capacity to articulate basic economic theory, analytically deriving them from mathematical reasoning
  • Conceptually analyse a specific economic problem using advanced analytical tools
  • Express recommendations about economic policy at macro and micro levels
  • Make independent judgements and defend them dialectically
  • Possess and understand knowledge that provides a basis or opportunity for originality in the development and/or application of ideas, often in a research context
  • Student should possess the learning skills that enable them to continue studying in a way that is largely student led or independent
  • Students should know how to communicate their conclusions, knowledge and final reasoning that they hold in front of specialist and non-specialist audiences clearly and unambiguously
  • Use new technology for the collection and organisation of information to solve problems in professional activities

Learning Outcomes

  1. Analyse the advantages and disadvantages of neoclassical assumptions
  2. Frame an economic decision-making question in a simple strategic context in a mathematical problem and derive the answer using mathematical logic
  3. Interpret the modelling of a classical problem, the conclusion deriving from it and its limitations
  4. Make independent judgements and defend them dialectically
  5. Possess and understand knowledge that provides a basis or opportunity for originality in the development and/or application of ideas, often in a research context
  6. Propose a simple economic problem in an analytical manner
  7. Student should possess the learning skills that enable them to continue studying in a way that is largely student led or independent
  8. Students should know how to communicate their conclusions, knowledge and final reasoning that they hold in front of specialist and non-specialist audiences clearly and unambiguously
  9. Use new technology for the collection and organisation of information to solve problems in professional activities

Content

Microeconomics I

1. Rational Behavior and Choice
2. Market Demand
3. Production and Firm Behavior
4. Decisions under uncertainty

Macroeconomics I

  1. Deterministic neoclassical growth model (LS ch. 7; K ch. 3, 7):
    1. social planner, equilibrium concepts, solution methods, welfare theorems
    2. Application: calibration of model (CP sec. 4)
    3. Dynamic programming (K ch. 4-5, SL ch. 3-4, LS ch. 3)
    4. Stochastic models (K ch. 6, LS ch. 8)
      1. Representation of risk
      2. Time-0 trading and sequential trading equilibrium in endowment economy
      3. Stochastic neoclassical growth model (RBC-model)
      4. Application: discussion of model calibration (CP sec. 6-7; KPR) and discussion of capital-skill complementarity (KORV)
      5. Overlapping generation models (K ch. 8, LS ch. 9)
        1. Time-0 trading and sequential trading equilibrium in endowment economy
        2. (Possible) Pareto inefficiency of equilibria and positive value of outside money
        3. Pay-as-you-go pension systems
        4. Production economy

Methodology

•     Theory  classes        

•     Practice    classes        

•     Learning    based    on    problem    solving      

•     Tutorials  

•     Personal  study        

•     Study  groups        

•     Textbook  reading        

•     Article  reading        

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Theory classes 112.5 4.5 1, 4, 2, 3, 6, 8, 7, 5, 9
Type: Supervised      
Problems sets, tutorials 75 3 1, 4, 2, 3, 6, 8, 7, 5, 9
Type: Autonomous      
Personal study, study groups, textbook readings, article readings 187.5 7.5 1, 4, 2, 3, 6, 8, 7, 5, 9

Assessment

 

Final  Exams    

50%  

Class  attendance    and    active    participation    

20%  

Problem  sets    and    assignments    

30%  

A module consists of different courses which are evaluated through final exams, problem sets and assignments and other class activities such as class attendance, presentations, etc.

 

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Class Attendance and Problem sets and assignments 50% 0 0 1, 4, 2, 3, 6, 8, 7, 5, 9
Final Exams 50% 0 0 1, 4, 2, 3, 6, 8, 7, 5, 9

Bibliography

 

  • MAS-COLELL, A., M. WHINSTON and J. GREEN, Microeconomic Theory, Oxford University Press, 1995.
  • JEHLE, G.A., P. J. RENY, Advanced Microeconomic Theory (Third Edition). Prentice hall. 2011.
  • (K) Krueger, D., 2017: “Macroeconomic Theory”, teaching manuscript.
  • (LS) Ljungqvist, L. and T. Sargent, 2004: “Recursive Macroeconomic Theory”, MIT Press.
  • (SL) Stokey, N. L. and R. E. Lucas, Jr., 1989: “Recursive Methods in Economic Dynamics”, Harvard University Press.(CP) Cooley, T. F. and E. C. Prescott, 1995: “Economic Growth and Busines
  • Cycles”, in Cooley, T.F. (ed.): Frontiers of Business Cycle Research, Princeton University Press.
  • (KPR) King, R. G., C. I. Plosser, and S. T. Rebelo, 1988: “Production Growth and Business Cycles. I. The Basic Neoclassical Growth Model”, Journal of Monetary Economics, 21, pp. 195-232
  • (KORV) Krusell, P., L. E. Ohanian, J.-V. Ríos-Russ, and G. L. Violante, 2000: “Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis”, Econometrica, 68 (5), pp. 1029-1053