1 Overview of Class and Themes

Application 1: Minimum Wage and Employment – Theory and Evidence
2 Continuation of Minimum Wage and Employment – Theory and Evidence Problem set 1 out
3 Introduction to Consumer Theory
4 Utility Maximization and Constrained Optimization

Utility Maximization

Expenditure Minimization
5 Revealed Preference

Taxation and Distortions

Consumer Sovereignty

Applications of Consumer Theory: Lump-sum v. In-kind Transfers, Taxes and Rebates, and The Distortionary Effects of Taxation, Price Changes and Consumer Surplus
Problem set 2 out

Problem set 1 due one day after Session 5
6 Application of Consumer Theory: The Value of Food Stamps
7 Engel’s Law

Normal, Inferior and Giffen Goods

Marshallian vs Hicksian Demand

Slutsky Equation

Wetzstein, Chapter 4
Problem set 2 due one day after Session 7
8 Wrap Up of Consumer Theory
9 Exam 1
10 Applied Competitive Analysis

Wetzstein, Chapter 10
11 Continuation of Applied Competitive Analysis Problem set 3 out
12 General Equilibrium in a Pure Exchange Economy

Edgeworth Box

Production Possibility Frontier

Fundamental Welfare Theorems
13 General Equilibrium (cont.)

Comparative Advantage vs. Competitiveness

Gains from Trade
14 General Equilibrium Wrap-up Problem set 3 due one day after Session 14
15 Choice Under Uncertainty: The Expected Utility Framework
16 Choice Under Uncertainty: Application to Teen Motherhood Problem set 4 out
17 Risk and Safety Regulation

Product Liability and Regulation

Risk Perception

Insurance Markets: Why they Exist, How they Work
18 Exam 2 Problem set 4 due two days after Session 18
19 Risk and Safety Regulation
20 Economics of Information I Problem set 5 out
21 Economics of Information II
22 Economics of Information III Problem set 5 due

Problem set 6 out
23 Economics of Information IV
24 Externalities: The Problem and Three Solutions Problem set 6 due one day after Session 24
25 Externalities and Entry Restrictions
26 Positive Externalities