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2019/20 Undergraduate Module Catalogue

LUBS3005 Advanced Microeconomics

10 creditsClass Size: 300

Module manager: Andrew Smith
Email: A.S.J.Smith@its.leeds.ac.uk

Taught: Semester 2 View Timetable

Year running 2019/20

Pre-requisite qualifications

LUBS2140 Intermediate Microeconomics
AND at least one of:
LUBS2230 Mathematics for Business and Economics 2 OR
LUBS2920 Advanced Analytical Methods OR
MATH2640 Introduction to Optimisation

This module is not approved as a discovery module

Module summary

This module explores a range of topics in advanced microeconomics that are designed to be intellectually challenging at the theoretical level, whilst retaining a strong degree of relevance to economic policy in practice. A significant part of the theoretical material relates to welfare economics and the module explores how far these principles are actually useful for policy makers trying to make important policy decisions aimed at maximising social welfare (if this is even possible in practice), taking account of economic efficiency and distributive justice. Other topics in advanced microeconomics are also considered where they have a close link to practical application and government policy in particular (for example, the theory of auctions and prospect theory).

Objectives

The module aims to expose students to topics in advanced microeconomics, focusing around the general area of welfare economics and the link between welfare economics and the practical application of social cost benefit analysis. The assumptions underpinning welfare economics are articulated and challenged in detail and the practical implications of applying theoretical concepts in social cost benefit analysis are considered. Other topics in advanced micro are also explored (e.g. auction theory and prospect theory).

Learning outcomes
Upon completion of this module students will be able to:
- Interpret and outline the theoretical underpinnings of general equilibrium theory, welfare economics and its links with the practical application of social cost benefit analysis
- Make informed comment on auction and prospect theory (from a theoretical and practical policy perspective)

Skills outcomes
Upon completion of this module students will be able to:
Transferable
- Apply critical thinking developed through exposure to complex economic and ethical issues
- Critique learned techniques and concepts from both a theoretical and a practical perspective

Subject specific
- Apply mathematical techniques to solve economic problems
- Apply learned knowledge in relevant policy contexts


Syllabus

Indicative content (the exact topics studied will vary from year to year)
- The role and use of welfare economics
- Efficiency versus distribution
- General equilibrium and Pareto optimality
- Compensation tests and equity issues
- Social welfare functions, Arrow's impossibility theorem, distributive weighting systems
- Liberalism versus the Pareto principle
- Alternative measures of consumer and producer surplus
- Aggregation issues
- Market failure, externalities and public goods
- Efficient (first and second best) pricing rules for regulated or state owned sectors subject to market failure (including Ramsey pricing);
- Auction theory
- Prospect theory
- Non-market valuation

Teaching methods

Delivery typeNumberLength hoursStudent hours
Office Hour Discussions51.005.00
Lecture101.0010.00
Seminar41.004.00
Private study hours81.00
Total Contact hours19.00
Total hours (100hr per 10 credits)100.00

Private study

For each 10 credits of study taken, the expectation is that the normal study time (including attendance at lectures and tutorials, self-study and revision) is 100 hours.

Opportunities for Formative Feedback

Students will receive feedback on their progress via the classes, as described above, and by written comments on answers to the specimen exam paper.

Methods of assessment


Exams
Exam typeExam duration% of formal assessment
Standard exam (closed essays, MCQs etc)2 hr 00 mins100.00
Total percentage (Assessment Exams)100.00

The resit for this module will be 100% by 2 hour examination.

Reading list

The reading list is available from the Library website

Last updated: 13/05/2019

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