ULMS Electronic Module Catalogue
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title ADVANCED MICROECONOMICS
Code ECON342
Coordinator Prof DM Demougin
Economics, Finance and Accounting
Dominique.Demougin@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2017-18 Level 6 FHEQ First Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):
ECON221; ECON222 ECON221 and ECON222 

Modules for which this module is a pre-requisite:
 

Programme(s) (including Year of Study) to which this module is available on a required basis:
Programme:L101 Year:4 Programme:LZ00 Year:3

Programme(s) (including Year of Study) to which this module is available on an optional basis:
Programme:Y001 Year:3 Programme:BCG0 Year:3 Programme:L000 Year:3 Programme:GN11 Year:3 Programme:GL11 Year:3

Teaching Schedule
  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24
Lectures will provide an introduction and organised framework of analysis for core topics, as well as relevant analytical and problem-solving techniques.
  10
The seminar/tutorial programme will provide structured practice in core analytical and problem-solving methods applicable to each topic, strengthen student intuition regarding the nature of particular issues in microeconomic analysis and their methods of analysis and solution and also provide a forum in which students can clarify areas of partial understanding with the tutor. Moreover, It will allow the students to discuss possible extensions of the basic analysis presented in class.
      34
Timetable (if known)              
Private Study 116
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Unseen Written Exam  120 minutes  1  70  Yes    Assessment 2 Notes (applying to all assessments) Mid-term test Closed book Resit in line with University policies 
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Coursework  60 minutes  1  30  Yes    Assessment 1 

Aims

This module aims to provide an understanding of the market failure resulting from asymmetric information. The course covers some of the canonical models of adverse selection and moral hazard focussing on the design of optimal contracts under informational asymmetries.

Learning Outcomes
Solve simple economic models
Understand underlying assumptions

Understand theorems and key proofs

Predict the choices of economic agents

Teaching and Learning Strategies

Lecture - Lectures will provide an introduction and organised framework of analysis for core topics, as well as relevant analytical and problem-solving techniques.

Tutorial - The seminar/tutorial programme will provide structured practice in core analytical and problem-solving methods applicable to each topic, strengthen student intuition regarding the nature of particular issues in microeconomic analysis and their methods of analysis and solution and also provide a forum in which students can clarify areas of partial understanding with the tutor. Moreover, It will allow the students to discuss possible extensions of the basic analysis presented in class.

Syllabus
1 

Topic 1: Introduction

Topic 2: The basic adverse selection model

Topic 3: The revelation principle

Topic 4: The generalized adverse selection problem

Topic 5: The basic moral hazard problem

Topic 5a: The risk versus efficiency trade-off

Topic 5b: The rent versus efficiency trade-off

Topic 5c: The multitasking problem

Topic 6: Special Issues

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.
Explanation of Reading List: