Topics in Microeconomics II

Introduction

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. 

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).