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Department of Economics


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Term 1
The aim of the course is to provide an overview of modern microeconomics. In particular, students will be expected to understand the critical assumptions behind theoretical models and the relevance of models for policy-making in developing countries. Particular emphasis is put in this course on game theory, the economics of asymmetric information and on externalities as these are used in models applied to developing countries. Other topics include, risk, general equilibrium and welfare economics, and theories of collective action. Case studies are used from a variety of developing countries.
A background in economics is important, though no mathematical ability is assumed.

Objectives and learning outcomes of the course

On successful completion of the course, students will be able to:
1. Summarise the critical assumptions behind theoretical models and their relevance for policy making in developing countries
2. Show an understanding of the relative merits of game theory, economics of asymmetric information and of externalities when applied to developing countries.  
3. Illustrate through case studies examples of risk theory and theories of collective action and of general  equilibrium and welfare economics

Method of assessment

Assessment weighting: Exam 70% / Coursework 30% (1 essay). All coursework is resubmittable.

Suggested reading

Background Reading
  • Kreps, Game Theory and Economic Modelling, Oxford University Press, 1990.
  • Varian, H., Microeconomic Analysis, W.W. Norton & Co, London 1992.