This course provides students with an understanding of how to formally model the economic behaviour of economic agents, individual consumers (demand theory) and firms (production theory). It also introduces the concept of market failure and the role of government. The economy can also be viewed a multi-sectoral input-output system. In addition, the economy can be conceived of as an evolutionary system in which a variety of different operational routines are developed and exposed to forces of selection and reproduction. The insights gained from these alternative conceptions of an economy are compared and evaluated. Systems of regulation, governance and prudential control are of particular importance for financial institutions. Policies to manage this important sector of the economy are also examined.
- Semester 1 - 2017
On successful completion of the course students will be able to:
1. Demonstrate a thorough understanding of the analytical techniques adopted in microeconomics;
2. Critically assess the underlying assumptions and models employed in microeconomics;
3. Utilize techniques developed in the course to analyze specific economic issues.
A variety of theoretical perspectives are introduced to encourage debate
- Demand Theory - Optimization under constraints, deriving demand functions, welfare economics
- Production Theory - Duality theory, cost and production functions, derived factor demand, economies of scale and scope, technological change, network effects, imperfect competition
- Input-Output Models & Capital Debates - Multisectoral modelling (Leontieff, Sraffa, and von Neumann Systems), the Capital debates
- Evolutionary Economics - Motivation and approaches to modelling and applications
- A Critical Perspective on Finance Theory - Uncertainty versus risk, theories of crisis, issues in regulation
This course is only available to students enrolled in the Bachelor of Commerce (Honours) program.
Bachelors degree or equivalent in economics
Presentation: Student Presentations
Essay: Essay 1 & 2
In Term Test: In-class Quantitative Test