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DRE 7032 Topics in Microeconomics II

DRE 7032 Topics in Microeconomics II

Course code: 
DRE 7032
Course coordinator: 
Fabio Miessi Sanches
Course name in Norwegian: 
Topics in Microeconomics II
Product category: 
PhD Economics courses
2023 Spring
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

The aim of the course is to give the students a thorough understanding af selected topics in microeconomics.  We will cover assignment and selection models. 

Learning outcomes - Knowledge

After taking this course students should be familiar with all main types of assignment models and their applications, including the most recent contributions to this literature. 

Learning outcomes - Skills

The students are expected to learn


  • How to construct and solve assignment models
  • How to  solve and identify models of self-selection
  • How to apply assignment models to economically relevant problems
General Competence

Understand how the sorting of heterogenous workers to hetergoenous firms affects the distribution of wages, and how changes in technology and the composition of workforce (for example due to migration) influence wage inequality.

Course content

The main objective of this course is to give an introduction to some of the main topics in modern advanced microeconomic theory. In the Spring 2021 we will cover assignment and selection models. Specifically, the topics covered will include: 

  •  the general Monge-Kanotorovich problem (Chapters 2 and 7 of Galichon, 2016);
  •  the one-dimensional assignment model of Becker (1973) and Sattinger (1975, 1979);
  •  its applications to migration (Costrell and Loury, 2004) and CEO compensation (Tervio, 2008; Gabaix and Landier, 2008);
  •  the selection model of Roy (1951) and its more recent applications (Heckman and Seldacek, 1985; Autor, Levy, Murnane, 2003); 
  •  the assignment model with endogenous firm size (Teulings 1995, 2005; Costinot and Vogel 2010; Eeckhout and Kircher 2018).
Teaching and learning activities

The course will be taught over 4 weeks, with 6 two hour lectures over the first three weeks, and a single 3 hour lecture in the fourth week. There will also be a single three hour long practice session, where the students will solve problem sets/present prepared solutions under the supervision of the instuctor (normally in week 4).

Software tools
No specified computer-based tools are required.

Enrollment in a PhD Programme is a general requirement for participation in PhD courses at BI Norwegian Business School.
External candidates are kindly asked to attach confirmation of enrollment in a PhD programme when signing up for a course. Other candidates may be allowed to sit in on courses by approval of the courseleader. Sitting in on a course does not permit registration for the course, handing in exams or gaining credits for the course. Course certificates or confirmation letters will not be issued for sitting in on courses.


Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Required prerequisite knowledge

Having taken DRE 7031 Topics in Microeconomics I  course is recommended but not required.

Exam category: 
Form of assessment: 
Written submission
30 Hour(s)
Paper proposal
Exam code: 
DRE 70321
Grading scale: 
Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
Group work / Assignments
36 Hour(s)
Specified learning activities (including reading).
Student's own work with learning resources
36 Hour(s)
Autonomous student learning (including exam preparation).
18 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 3 ECTS credit corresponds to a workload of at least 80 hours.