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2021/2022

Economics II

Code: 40096 ECTS Credits: 15
Degree Type Year Semester
4313805 Economic Analysis OB 1 2
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:
Maria Teresa Cabeza Gutes
Email:
Maite.Cabeza@uab.cat

Use of Languages

Principal working language:
english (eng)

Teachers

Francisco Obiols Homs
Nezih Guner

External teachers

Ramón Caminal

Prerequisites

No specific prerequisits.

Objectives and Contextualisation

This  module  covers  the  second  part  of  the  core  in  modern  microeconomics  and  macroeconomics.  The  topics  seen   in  this  module  are  the  foundation  to  the  models  that  are  used  in  advanced   microeconomics and  macroeconomics.  The  section  on  microeconomics  formally  demonstrates,  through  advanced  mathematical  techniques,  the  existence  of  a  general  equilibrium  and  its  properties,  discussing  the  fundamental theorems  of  welfare  economics.  This  section  also  discusses  cases  where  classical  assumptions  fail  and  its  consequences.  The  section  on  macroeconomics  studies  mathematical  models  of  general  equilibrium  under uncertainty  and  their  implications  for  asset  evaluation.  This  section  also  provides  the  student  with  dynamic  programming  techniques;  these  techniques  are  the  necessary  tools  for  solving  dynamic  models. 

Competences

  • Capacity to articulate basic economic theory, analytically deriving them from mathematical reasoning
  • Conceptually analyse a specific economic problem using advanced analytical tools
  • Develop the ability to assess sex and gender inequalities in order to design solutions.
  • 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. Distinguish between general and partial equilibrium models
  2. Frame an economic question in a general equilibrium mathematical model and know how to derive and understand the conclusions deriving from it
  3. Know how to apply the instruments of gender perspective in the analysis of organisations.
  4. Know how to carry out a gender-sensitive analysis.
  5. Know how to carry out research with a gender perspective.
  6. Know how to integrate the conditions and needs of women and men, in addition to a human- rights approach, into development-cooperation policies.
  7. Know how to make an inclusive and non-sexist use of language.
  8. Know the neoclassical assumptions and describe their implications for the behaviour of an aggregate market and for the behaviour of economic aggregates
  9. Make independent judgements and defend them dialectically
  10. Make recommendations based on genera equilibrium models
  11. 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
  12. Produce, collect and interpret empirical data in a gender-sensitive manner.
  13. Student should possess the learning skills that enable them to continue studying in a way that is largely student led or independent
  14. 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
  15. Use new technology for the collection and organisation of information to solve problems in professional activities

Content

I. Microeconomics  II  

1.Introduction to General Equilibrium 


2.Equilibrium and its Basic Welfare Properties


3.The Positive Theory of Equilibrium


4.The Core and Equilibria

5.Market Power

6.Adverse Selection, Signaling and Screening

7.The Principal Agent Problem

 

II. Macroeconomics  II 

1. Asset pricing

2. OLG with money

3. Sidrauski model

4. Cash-in-Advance model

5. Kiyotaki-Wright search theory

6. Imperfect information: Lucas’ Islands model

7. New-Keynesian monetary model

8. Monetary and fiscal policy

 

III. Macroeconomics III

1. Introduction

2. The IM model

3. The general equilibrium of the IM model

4. Optimal income taxation

5. Optimal income taxation in IM economies

6. Models of the labor market

7. Heterogeneous firms

For a detailed description of the content of this module go to http://idea.uab.cat/master_program.php .

 

Methodology

The course will consist of sessions where the instructor presents the material, and sessions specifically dedicated to problem solving. Students are encouraged to form study groups to discuss assignments and readings.

The proposed methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.

 

Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Theory classes 112.5 4.5 10, 8, 1, 9, 2, 14, 13, 11, 15
Type: Supervised      
Problems sets, tutorials 75 3 10, 8, 1, 9, 2, 14, 13, 11, 15
Type: Autonomous      
Personal study, study groups, textbook readings, article readings 187.5 7.5 10, 8, 1, 9, 2, 14, 13, 11, 15

Assessment

Final  Exams    

50%  

Class  attendance    and    active    participation    

20%  

Problem  sets    and    assignments    

30%  

The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses. 

   

   

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Class Attendance and Problem sets and assignments 50% 0 0 10, 8, 1, 9, 2, 12, 14, 13, 3, 5, 7, 4, 6, 11, 15
Final Exams 50% 0 0 10, 8, 1, 9, 2, 12, 14, 13, 3, 5, 7, 4, 6, 11, 15

Bibliography

Microeconomics II:

Mas-Colell, A, M. Whinston and J. Green, Microeconomic Theory, Oxford University Press

 

Macroeconomics II:

Blanchard, O. and Fischer, S., Lectures on Macroeconomics 

Walsh, C,  Monetary Theory and Policy by (W), MIT Press

 

Macroeconomics III:

Ljungqvist, L. and T. Sargent, Recursive Macroeconomic Theory, MIT Press

Stokey, N. L., and R. E. Lucas, Recursive Methods in Economic Dynamics, Harvard University Press

 

Additional references will be provided during the course.

Software

  • Matlab
  • R
  • Phyton
  • Stata