The course aims to provide students with the main notions about the functioning of markets (micro perspective) and the economic system of a country as a whole (macro perspective). Starting from the description of the theoretical model of perfect competition, we will analyze the main causes of market inefficiency. Students will be able to distinguish the main causes of “market failures”: market power, imperfect information, strategic interaction, the presence of externalities, and public goods. The course will then present the main policies to restore market efficiency and improve the welfare of individuals. From the macroeconomic perspective, we will introduce basic concepts for such as GDP, the role of the foreign sector, aggregate demand and supply with a particular emphasis on fiscal and monetary policies.
First part: Market, efficiency and public policy
1-Consumer choice, individual demand, and market demand.
2-Profit maximization and cost functions.
3-Partial and general equilibrium.
4-Welfare economics theorems.
5-Market failures: market power and antitrust policies.
6-Externalities, public goods, and imperfect information.
7-The aggregation of preferences and social welfare.
Second part: Macroeconomic policies
1-Definition of key concepts (GDP).
2-Goods and financial markets: The IS-LM model.
3-The labor market.
4-The model of aggregate demand and supply.
5-Economic policies in closed and open economy.
The teaching material will be available on the e-Learning website (Moodle). All students are requested to register to e-Learning and download the teaching material.
|Krugman, P.; R. Wells||L’Essenziale di Economia||Zanichelli|
|DARON ACEMOGLU, DAVID LAIBSON, JOHN A. LIST||PRINCIPI DI ECONOMIA POLITICA. Teoria ed evidenza empirica||Pearson||2016||9788891901071|
|BLANCHARD O.||Scoprire la macroeconomia I. Quello che non si può non sapere||Il Mulino||2016|
Written exam with open questions and exercises, and a possible oral examination.