Microeconomics
PROFESSOR GERD WEINRICH; PROFESSOR FERDINANDO COLOMBO
COURSE AIMS
The first module introduces the students to the theory of general economic
equilibrium. Using a standard approach and an acceptable level of difficulty, the
course considers traditional themes of Walrasian theory along with several recent
extensions of the model. With the second module, the student will develop an
indepth understanding of the theory of rational choice in settings characterised by
the presence of risk or uncertainty. The second module is recommended especially
for anyone aiming to specialise in financial economics.
COURSE CONTENT
MODULE I (Professor Gerd Weinrich)
1. References to the theory of consumption and production.
2. The Walrasian model of general economic equilibrium and welfare economics
theorems.
3. The ineffectiveness of the "invisible hand": externalities and public goods.
4. General economic equilibrium and time.
MODULE II (Professor Ferdinando Colombo)
1.
2.
3.
4.
5.
Risk and uncertainty: theories of expected utility.
Uncertainty, procurement of information and beliefs.
Risk, return and preferences.
Individual demand function for goods contingent to the states of the world.
Market equilibrium with goods contingent to the states of the world and with
Arrow’s securities.
READING LIST
1. G. IMPICCIATORE, Introduzione alla moderna microeconomia, CEDAM, Padua, 2006, fourth
edition.
2. T. VAN ZANDT, Introduction to the Economics of Uncertainty and Information, forthcoming
publication of Oxford University Press, Oxford, UK, 2006 (available in electronic format on
the Blackboard).
3. H. VARIAN, Microeconomic Analysis, W.W. Norton & Company, 1992, third edition (optional,
for indepth study).
4. R.B. MYERSON, Probability Models for Economic Decisions, Thomson Brooks/Cole,
2005 (optional; very useful for students attending class on a regular basis).
5. J.P. DANTHINE-J-B. DONALDSON, Intermediate Financial Theory, Elsevier, Nederland,
Amsterdam, 2005, second edition (optional, useful for anyone who wishes to specialise in
financial economics; the exam will regard the following parts only: 10.1-10.2 and 10.4-10.5).
Detailed information about the reading list and some of the documents made available
by the professors (useful for meaningful class attendance and study for the exam) will be
published on the Blackboard.
TEACHING METHOD
Lectures and classroom assignments.
ASSESSMENT METHOD
Written exam consisting of questions about theory and exercises with open answers. A
mid-term is planned at the end of the first module. A detailed description of the terms and
conditions for the exam is available on the Blackboard.
NOTES
The course provides for extensive use of mathematical and statistical tools that the
students should have already become familiar with during their three years of study.
Further information can be found on the lecturer's webpage
http://www2.unicatt.it/unicattolica/docenti/index.html, or on the Faculty notice board.
at
Microeconomics (Module I)
PROFESSOR GERD WEINRICH
COURSE AIMS
The course objective is to introduce the students to the theory of general economic
equilibrium. Using a standard approach and an acceptable level of difficulty, the
course considers traditional themes of Walrasian theory along with several recent
extensions of the model.
COURSE CONTENT
1. References to the theory of consumption and production.
2. The Walrasian model of general economic equilibrium and welfare economics
theorems.
3. The ineffectiveness of the "invisible hand": externalities and public goods.
4. General economic equilibrium and time.
READING LIST
1. G. IMPICCIATORE, Introduzione alla moderna microeconomia, CEDAM, Padua, 2006, fourth
edition.
2. H. VARIAN, Microeconomic Analysis, W.W. Norton & Company, 1992, third edition (optional,
for indepth study).
Detailed information about the reading list and some of the documents made available
by the professors (useful for meaningful class attendance and study for the exam) will be
published on the Blackboard.
TEACHING METHOD
Lectures and classroom assignments.
ASSESSMENT METHOD
Written exam consisting of questions about theory and exercises with open answers.
NOTES
The course provides for extensive use of mathematical and statistical tools that the
students should have already become familiar with during their first two years of study.
Further information can be found on the lecturer's webpage
http://www2.unicatt.it/unicattolica/docenti/index.html, or on the Faculty notice board.
at
Microeconomics (Module II)
PROFESSOR FERDINANDO COLOMBO
COURSE AIMS
With this course, the student can expect to develop an indepth understanding of the
theory of rational choice in settings characterised by the presence of risk or
uncertainty. The course is recommended especially for anyone aiming to specialise
in financial economics.
COURSE CONTENT
1.
2.
3.
4.
5.
Risk and uncertainty: theories of expected utility.
Uncertainty, procurement of information and beliefs.
Risk, return and preferences.
Individual demand function for contingent goods to the states of the world.
Market equilibrium with contingent goods to the states of the world and with
Arrow’s securities.
READING LIST
1. T. VAN ZANDT, Introduction to the Economics of Uncertainty and Information, forthcoming
publication of Oxford University Press, Oxford, UK, 2006 (available in electronic format on
the Blackboard).
2. R.B. MYERSON, Probability Models for Economic Decisions, Thomson Brooks/Cole,
2005 (optional; very useful for students attending class on a regular basis).
3. J.P. DANTHINE-J-B DONALDSON, Intermediate Financial Theory, Elsevier, Amsterdam,
Nederland, 2005, second edition (optional, useful for anyone who wishes to specialise in
financial economics; the exam will regard the following parts only: 10.1-10.2 and 10.4-10.5).
Detailed information about the reading list and some of the documents made available
by the professors (useful for meaningful class attendance and study for the exam) will be
published on the Blackboard.
TEACHING METHOD
Lectures and classroom assignments.
ASSESSMENT METHOD
Written exam consisting of questions about theory and exercises with open answers.
NOTES
The course provides for extensive use of mathematical and statistical tools that the
students should have already become familiar with during their first two years of study.
Further information can be found on the lecturer's webpage
http://www2.unicatt.it/unicattolica/docenti/index.html, or on the Faculty notice board.
at