Second year module
Lecturer: Jaideep Roy
This course introduces elementary Game Theory and employs these notions to develop simple microeconomic models to highlight the link between Microeconomics and modern Business Cycle Theory.
Topics such as Inter-temporal Household Behaviour, Macroeconomic Coordination Failure, Wage and Employment Bargaining between Industry and Labour Unions, Job Search and Unemployment, Bank Runs and Financial Crisis, and Rational Expectations and Effective Monetary Policy will be studied in depth and in response to Exogenous Macroeconomic Shocks.
On completion of this module students will be able to:
Demonstrate understanding of basic game theory and theory of intertemporal choice as they relate to consumption, leisure, work, investment; wages, employment, and monetary policy; demonstrate how these elements can be combined to explain fluctuations in economic variables over the business cycle
2-hour written examination (60%),
two problem sets (20% each)