Spring 2011 - 62175 - PA393K - Applied Microeconomics for Policy Analysis
|Instructor(s):|| Auerbach, Robert D.
|Day & Time:||Th 6:00 - 9:00 pm|
|Waitlist Information:||For LBJ Students: UT Waitlist Information|
|Final Exam Information:||May 12, 2011 - 6:00pm - 9:00pm SRH 3.316/350|
This course covers microeconomic policy analysis and is usually taken during the first year. It acquaints students with the ways in which economic analysis bears on public policy issues. Students learn to identify the relevant economic analyses for their strengths and weaknesses in relation to the economic principles involved, and to comprehend and assess what professional economists can contribute to the public sector. The first portion of the course covers microeconomic theory with particular emphasis on determining price and output under perfect competition and other forms of market structure; general equilibrium and welfare theory; and the concept of market failure, including public goods, externalities, and imperfect market structure. The second portion of the course provides a rigorous coverage of the methodology of cost-benefit analysis and demonstrates its application through examination of specific case studies.
The subjects covered include the economic benefits and problems of several types of economic organization of societies from central control to capitalism. The benefits, recent problems and legislation associated with the corporate organization of businesses will be discussed. The microeconomic analyses of consumer choice, firm profit maximization under competitive and monopolistic competition, the demand and supply of factors of production, and measures of consumer welfare will be presented. Price discrimination will be described with an analysis of asymmetric information in the commercial loan market. Throughout the course economic issues facing government legislators, their staffs and government administrators will be interwoven into the lectures.
Since the 1980s a major change in the types and quantity of financial assets has occurred with massive domestic and international flows of capital funds and the extensive use of leverage (borrowing). The current severe recession is closely connected to the role of financial assets. This subject, that includes both macroeconomic and microeconomic areas of study will be presented. It is essential for understating the allocation of resources to productive enterprises, the distribution of goods and services to consumers, and international transactions during the current crisis and into the future.