# AEASP: Course Descriptions

FOUNDATIONS LEVEL

### ECSP 401 – Microeconomics

Instructors: Dr. Donald Meyer (June), Dr. Kasaundra Tomlin (July)

Main topics: Consumer theory: Mathematical and graphical analysis. Budget sets, preferences, indifference curves in traditional and atypical cases. Choice and demand. Revealed preference, Slutsky equation, endowment economies and labor supply. Micro applications of consumer theory.

Theory of the firm: profit maximization, cost minimization, cost functions.

Use calculus to determine the optimal price and output combinations in the market structures of perfect competition, monopoly, and oligopoly. Monopolies in factor markets and monopoly behavior including advanced pricing theories of price discrimination.

Textbooks:

Varian, Hal R., Intermediate Microeconomics with Calculus

Workouts Book to accompany Intermediate Microeconomics with Calculus Theodore C. Bergstrom and Varian, Norton

### ECSP 405 – Mathematical Methods

Instructors: Dr. Donald Meyer (June), Dr. Antonio Doblas-Madrid (July)

Main topics: Single-variable calculus. Differentiation, chain rule, Taylor approximations, exponential and logarithmic functions. Optimization: Stationary points, first and second derivative tests, concavity and convexity. Multivariate calculus, focusing on two independent variables. Partial derivatives, quadratic forms, homogeneous functions. Constrained and constrained optimization. Maxima, minima, saddle points. Lagrange method.

Integration. Geometric interpretation. Antiderivatives. Integration by parts, changes of variable. Linear algebra. Linear systems of equations. Vectors and matrices. Geometric interpretation and operations. Matrix determinants and inverses. Positive/negative definite and semidefinite matrices.

Textbooks:

Sydsaeter, Knut and Hammond, P. J., Mathematics for Economic Analysis, Prentice Hall

### ECSP 418 – Econometrics

Instructors: Dr. Kyoo-Il Kim

Main topics: This course is designed to provide solid understanding of the fundamentals in econometrics. Topics include regression analysis and testing, basic large sample theory, instrumental variables and 2SLS, simultaneous equations models, time series, and interpretation of econometric models.

Textbooks:

Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, sixth Edition, Cengage Learning.

### ECSP 491 – Research/Topics

Instructors: Dr. Christine Moser

Main topics: The goals of this course are to learn the tools to manage, organize, and analyze data and to apply good practices in writing research papers in economics. The course is not simply about applying techniques learned in econometrics courses, although this is part of it. Students will learn about all steps of the applied research process—from identifying topics and finding data to publishing and presenting.

Textbooks:

Alan Acock, A Gentle Introduction to Stata, 6th edition, Stata Press, 2018

Gujarati and Porter, Basic Econometrics, 5th edition, McGraw Hill, 2008

## ADVANCED LEVEL

### ECSP 801 – Microeconomics

Instructors: Dr. Jack Meyer (June), Dr. Thomas Jeitschko (July)

Main topics: Univariate and multivariate profit maximization, comparative statics, and the envelope theorem. Returns to scale, homogeneous, homothetic, concave, and quasi-concave functions. Discriminatory pricing, equivalent, compensating variation. Risk and Uncertainty with applications to finance and insurance. Monopoly and imperfect competition: Strategic complements and substitutes. Elements of game theory, solution concepts. Dynamic games of complete information. Games of incomplete information.

Textbooks:

Varian, Hal R., Microeconomic Analysis, (third edition) Norton Publishers, New York, 1992.

Mas-Colell, A, Whinston, M.D. and Green, J. R., Microeconomic Theory, Oxford University Press, New York, 1995.

Gibbons, Robert, Game Theory for Applied Economists, Princeton University Press, Princeton, NJ, 1992.

### ECSP 805 – Mathematical Methods

Instructors: Dr. Jack Meyer (June), Dr. Antonio Doblas-Madrid (July)

Main topics: One Variable Calculus Review. Continuity and differentiability, Implicit Function Theorem, total differentials, linearizing an Equation, Taylor's Theorem, one variable unconstrained optimization, and the Envelope Theorem. Matrix algebra: Determinants, inverses, Cramer's rule. Multivariable optimization, concavity, convexity, Hessians, Jacobians, quasiconcavity, homogeneous, homothetic. Integration, probability, expectations. Optimization with inequality constraints. Kuhn-Tucker conditions, Inada conditions. Dynamic models: Two-period, multi-period, infinite horizon. Initial and terminal/transversality conditions. Difference equations, phase diagrams, stable/unstable fixed points. Dynamic programming and the Bellman equation. Continuous time and the Hamiltonian. Economic examples: Optimal savings, economic growth.

Textbooks:

Sydsaeter, Knut and Hammond, P. J., Mathematics for Economic Analysis, Prentice Hall

Klaus Wälde, Applied Intertemporal Optimization, http://www.waelde.com/pdf/AIO.pdf

### ECSP 818 – Econometrics

Instructors: Dr. Jeffrey Wooldridge

Main topics: This course covers probability and statistics to allow for further study of advanced econometrics. The goal is to provide a bridge between undergraduate and Ph.D.-level econometrics. We begin with basic concepts from probability, including random variables, random vectors, conditional distributions, and the multivariate normal distribution. Then important tools for asymptotic analysis, such as the law of large numbers and central limit theorem, are treated in some detail. In the final part of the course, the material on probability and convergence is used to discuss estimation and inference, using both finite-sample and asymptotic analysis.

Textbooks:

Casella and R.L. Berger, Statistical Inference, 2e. Duxbury, 2002

Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, sixth Edition, Cengage Learning.

### ECSP 891 – Research/Topics

Instructors: Dr. Lisa Cook

Main topics: The objective of this course is to expose AEASP students at the Advanced level to different types of applied research in economics and to help students produce an applied economics research paper by the end of the summer program. The course includes a review of basic econometrics, research design, and STATA.

Textbooks:

Alan Acock, A Gentle Introduction to Stata, 6th edition, Stata Press, 2018

Cunningham, Causal Inference: The Mixtape

Gujarati and Porter, Basic Econometrics, 5th edition, McGraw Hill, 2008

Jeffrey M. Wooldridge, Introductory Econometrics: A Modern Approach, sixth Edition, Cengage Learning.