Microeconomics: Theory and Applications II

This course focuses on standard models in areas including competition, prices, taxation, and public goods.

Microeconomic models are used by policymakers in a variety of areas. This course delves into details of standard models in areas including competition, prices, taxation, and public goods. The course will use models of strategic as well as non-strategic interactions and help students derive insights and apply them to policy problems. Students will learn the Arrow-Debreau theory of general equilibrium as well as its drawbacks and alternatives. They will also use Coasean bargaining framework to understand price setting behavior, along with different models of competition and their application to different situations. They will also read empirical papers and do data exercises in order to understand issues of redistribution and public good provision in a developing country context with high informality and low state capacity.