Scope and Objectives: This is a graduate level introduction to microeconomics for policy analysis, taught with calculus. For two-thirds of the semester, the primary organizing theme is the neoclassical framework of rational choice and policy solutions to market failure. The remainder of the semester covers history of economic thoughts, institutional structure, political decision making, and other views in economic analysis. Students completing this course successfully will have acquired the basic logic of economic thinking, some experience in using this logic for policy analysis, and an appreciation of the limitation of the logic.
Structure of Content: This course includes an independent research component and a classroom instruction component. Class members will form project teams, with each team doing independent research on the economic analysis of a policy topic. The classroom component of the course is organized into three parts:
Overview (two weeks) - big picture summary of history of economic thoughts, the basic logic of economic thinking, and the U.S. economic context.
The Neoclassical Story of the Market (six weeks)—neoclassical models of consumer choice, firm production, and market equilibrium.
Market Failureand Institutional Design (four weeks)—reasons for market failure, justification for policy interventions, and design of non-market approaches to address resource allocation and distribution.
Integrative Applications (three weeks)—use of economic logic to understand substantive real-life topics, taught by teams of class members.
Learning Experiences: There will be six projects spread throughout the semester, covering the progress from (a) historical perspective to (b) mechanics of mathematical analysisof economic concepts to (c) more complex economic modeling and creative policy application.
Project 1: Analytic Problem-Solving Exercise (consumer choice theory)
Project 2: Analytic Problem-Solving Exercise (firm production theory)
Project 3: Friday Learning Experience (all issues in neoclassical logic)
Project 4: Policy Briefing Paper (topic of team research)
Project 5: Teaching Session (topic of team research)
Project 6: Final Learning Experience (semester-wide coverage)
Expectation: This course is taught with mathematics as analytic language. Proficiency in algebra and differential calculus are required, as is completion of IEM. Previous background in microeconomics is not needed. Class members are asked to refrain from note-taking in class. Course Canvas site will be set up by mid-December, and a small amount of winter-break preparation materials should be completed before the beginning of the spring semester.