(*) Starred readings are required.
1.1. Overview of the Course
1.2. Review of Supply and Demand
1.3. Microeconomic Models, Comparative Statics, and Optimization
(*) Nicholson. Chap. 1 and 2.
Pindyck and Rubinfeld. Chap. 1.1-1.3.
(*) Krugman, Paul. "The Accidental Theorist." Slate (January 23, 1997).
(*) Card, David, and Alan B. Krueger. "Minimum Wages and Employment: A Case Study of the Fast-food Industry in New Jersey and Pennsylvania." American Economic Review 84, no. 4 (September 1994): 772-93.
(*) Freeman, Richard. "Comment: Review Symposium on Myth and Measurement: The New Economics of the Minimum Wage." Industrial and Labor Relations Review 48, no. 4 (July 1995).
(*) Kennan, John. "The Elusive Effects of Minimum Wages." Journal of Economic Literature 33 (December, 1995): 1950-65.
Card, David, and Alan B. Krueger. "Myth and Measurement: The New Economics of the Minimum Wage." Princeton: Princeton University Press, 1995.
2. Choice and the Theory of Demand
2.1. Rationality Axioms, Utility, and Indifference Curves
2.2. Constrained Utility Maximization, Demand Functions, Indirect Utility, the Expenditure Function
2.3. Individual Demand, Income and Substitution Effects
2.4. Substitutes and Complements, Market Demand, and Elasticities
2.5. Price Indices
(*) Nicholson. Chap. 3-7.
(*) Dwyer, G. P., and C. M. Lindsey. "Robert Giffen and the Irish Potato." American Economic Review (March 1984): 188-192.
(*) Waldfogel, Joel. "The Deadweight Loss of Christmas." American Economic Review 83, no. 5 (1993): 1328-36.
(*) Boskin, Michael, et al. "Toward a More Accurate Measure of the Cost of Living." Interim report to the Senate Finance Committee from the Advisory Commission to Study the Consumer Price Index. September 15, 1995.
(*) Krugman, Paul. "The CPI and the Rat Race." Slate (December 21, 1996).
3. Choice and Uncertainty, and Information
3.1. Uncertainty, Risk, Von Neumann-Morgenstern Expected Utility.
(*) Nicholson. Chap. 8.
(*) Kane, Thomas J., and Douglas Staiger. "Teen Motherhood and Abortion Access." Quarterly Journal of Economics 111, no. 2 (1996): 467-506.
4. Prices, Perfect Competition, General Equilibrium and Economic Efficiency
4.1. Economic Efficiency and Welfare Analysis
4.2. General Competitive Equilibrium
4.3. Trade, Comparative Advantage, Competitiveness, and Redistribution
(*) Nicholson. Chap. 15, 16, and 17.
(*) Scherer, F. M. "The U.S. Sugar Program." In Kennedy School of Government Case. 1992, pp. 1128.0.
(*) Krugman, Paul. "Competitiveness: A Dangerous Obsession." Foreign Affairs 73, no. 2 (March - April, 1994): 28-44.
(*) Krugman, Paul. "A Raspberry for Free Trade." Slate (November 21, 1997).
(*) Krugman, Paul. "The Tax Reform Obsession." New York Times Magazine (April 7, 1996): 36-37.
5. Information Economics: Insurance, Moral Hazard, Adverse Selection, and Signaling.
(*) Nicholson. Chap. 8 and 9. (Warning: sadly, chap. 9 is a poor introduction to the topic of information.)
(*) Rothschild, Michael, and Joseph E. Stiglitz. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Information." Quarterly Journal of Economics 90, no. 4 (1976): 630-649.
(*) Altman, Daniel, David M. Cutler, and Richard J. Zeckhauser. "Adverse Selection and Adverse Retention." American Economic Review 88, no. 2 (1998): 122-126.
(*) Akerlof, George A. "The Market for ¡yLemons:¡z Quality Uncertainty and the Market Mechanism." Quarterly Journal of Economics 84, no. 3 (August 1970): 488-500.
(*) Spence, Michael. "Job Market Signaling." Quarterly Journal of Economics 87, no. 3 (1973): 355-374.
(*) Tyler, John H., Richard J. Murnane, and John B. Willet. "Estimating the Labor Market Signaling Value of the GED." Quarterly Journal of Economics 115, no. 2 (2000): 431-468.
6. Game Theory and Applications to Network Externalities in the Information Age
(*) Nicholson. Chap. 10.
Recommended: Gibbons. Game Theory for Applied Economists. Chap. 1 and 2.
(*) David, Paul E. "Clio and the Economics of QWERTY." American Economic Review 75, no. 2 (1985): 332-337.
(*) Shapiro, Carl, and Hal R. Varian. Information Rules. Boston: Harvard Business School Press, 1999, Chap. 3 and 7, pp. 173-226.
(*) Krugman, Paul. "Entertainment Values." Slate (January 22, 1998).