DRE 7032 Topics in Microeconomics II
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.
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.
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
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.
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).
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).
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.
Having taken DRE 7031 Topics in Microeconomics I course is recommended but not required.
|Exam category||Weight||Invigilation||Duration||Grouping||Comment exam|
Form of assessment:
Examination when next scheduled course
|100||No||30 Hour(s)||Individual||Paper proposal|
|Form of assessment:||Written submission|
|Exam code:||DRE 70321|
|Resit:||Examination when next scheduled course|
Group work / Assignments
Student's own work with learning resources
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.