Microeconomic Analysis and Applications

The course consists of two modules; one focusing on theory and the other focusing on applications. **Module 1: Microeconomic Analysis (7,5 hp)** The module focuses on central aspects of microeconomics at an advanced level. One example is how consumer theory can help us to derive demand functions for different goods and how different restriction in the assumption regarding utility- and profit maximization as well as cost minimization puts on the functional form of the demand and supply functions. The second part of the module will give the students an understanding of how microeconomic theories and concepts can be used for welfare analysis. The module is also discussing decision-making under uncertainty. **Module 2: Applied Microeconomics (7,5 hp)** The purpose of this module is to introduce students to the practice of empirical economics. This module complements the material presented in the module Microeconomic Analysis. This means that at the end of the course students will be able to reproduce the many steps necessary to complete the estimation of four distinct common economic models. The module will provide students with the opportunity to explore the empirical methods used by economists when they approach empirical questions. The key focus in this module is the use of data to measure/estimate quantities that are economically meaningful, i.e. multipliers, elasticities, effects etc. The students will estimate four models among topics such as: a) the Engel Curve and the Almost Ideal demand system, b) the Supply and Demand model on a single market, c) measuring the Elasticity of substitution between capital and labour, d) a model of Female Labour Supply and Labour Market Participation, e) a Multinomial Logit Model of Discrete Choice, f) a Mincer Equation, g) Expected Utility.