Econ 7010: Ph.D. Microeconomic Theory One

FALL 2002

Anna Rubinchik-Pessach
Office location: Econ 121
Office hours: Monday and Friday 2:00-3:00 p.m. or by appointment
Tel: 303-735-0220
e-mail: Anna.Rubinchik@spot.colorado.edu

Course description.
This is the first course in Microeconomic Theory for Ph.D. students in a three semester sequence. Modeling rational choice under full information is the main objective of this part.
To achieve it we will have to master standard convex optimization techniques and then apply them to consumer and producer theory. Mathematical preliminaries will be introduced whenever necessary.

Texts

Grading

Course outline

Texts

Required text
A. Mas-Colell, M. D. Whinston and J. R.Green Microeconomic Theory , Oxford University Press, 1995. (MWG)

Strongly Recommended Texts

A. N. Kolmogorov, S. V. Fomin Introductory Real Analysis, Dover, New York, 1975. (KF)
K. Sydsaeter & P. J. Hammond Mathematics for Economic Analysis , Prentice-Hall. 1995. (SH)

Optional Texts

W. Novshek Mathematics for Economists, Academic Press, New York, 1993.
D. M. Kreps Notes of the Theory of Choice, Underground Classics in Economics, Westveiw Press, Boulder and London, 1988 (K)

Grading

Homework assignments 10%
First midterm exam 25%
Second midterm exam 25%
Final exam 40%

Students are encouraged to form study groups and discuss homework assignments, but they should write and submit their own (original) work.
As for the exams, any form of collaboration is prohibited.

Students with documented disabilities who may need academic accommodations should speak with the professor during first two weeks of the class (no later than September 10). Please, see also the Coordinator of Services to students with disabilities in the Disability Services Office, Willard 322 (phone 303-492-8671), so that such accommodations may be arranged.

Course Outline

Week 1 Introduction. Elements of Set Theory.
KF, ch.1 (pp.1-20); SH 1.7

Week 2 Preference Relations. Rationality. MWG, ch. 1; (Kreps. ch. 2-3)

Weeks 3, 4 Linear (vector) spaces. Euclidean Spaces.
Consumption Sets
KF ch.4 sec.13; SH ch.13
MWG 2.A-2.D

Weeks 5,6 Convexity
Representing preference relations with utility functions
K 14.1-14.2; SH 17.6-17.10
MWG 3.A-3.C

Week 7 Separation Theorems
Compactness, Weierstrass Theorem
MWG Appendix M.G.
MWG Appendix M.F.

Week 8 Unconstrained Optimization SH 17.3, 17.9; MWG Appendix M.J

First midterm is on Wednesday, October 16th at class time.

Weeks 9,10	Constrained Optimization: Lagrange Theorem, Kuhn-Tucker Theorem	SH 18.1-18.5; MWG Appendix M.K SH 18.8-18.9
Weeks 11,12	The Theorem of the Maximum, Envelope Theorem, Implicit Function Theorem Properties of Individual Demand Functions	SH 18.7; MWG Appendix M.L MWG Appendix M.E MWG 3.D
Week 13	Duality Expenditure Function. Hicksian Demand Aggregation	MWG 3.F MWG 3.E, 3.G MWG 4
Weeks 14, 15, 16	Production	MWG 5

Second midterm is a take home. It is due Wednesday, November 27th at class time

FINAL EXAM is on Saturday, December 14, 10:30 - 1:00 p.m.

Week 1	Introduction. Elements of Set Theory.	KF, ch.1 (pp.1-20); SH 1.7
Week 2	Preference Relations. Rationality.	MWG, ch. 1; (Kreps. ch. 2-3)
Weeks 3, 4	Linear (vector) spaces. Euclidean Spaces. Consumption Sets	KF ch.4 sec.13; SH ch.13 MWG 2.A-2.D
Weeks 5,6	Convexity Representing preference relations with utility functions	K 14.1-14.2; SH 17.6-17.10 MWG 3.A-3.C
Week 7	Separation Theorems Compactness, Weierstrass Theorem	MWG Appendix M.G. MWG Appendix M.F.
Week 8	Unconstrained Optimization	SH 17.3, 17.9; MWG Appendix M.J