ECON 3030 - Intermediate Economic Theory - Spring 2015

(formerly ECON 3130)

Department of Economics
Cornell University
Maxim Troshkin
(troshkin@cornell.edu, 446 Uris Hall)

The aim of this course is to teach the analytical methods of modern mainstream economic theory at an
intermediate level. The course will emphasize the conceptual foundations of economic theory and provide
concrete examples of their application to microeconomic topics.
The course is not about history or possible future developments of economic theory, nor a discussion of
current economic news.
Intermediate level implies that the course will make use of basic multivariate calculus, including total
derivatives and basic integrals, and mathematical constrained optimization.

Lectures:
(001) TR 10:10 - 11:25am in Malott Hall 253
Discussion/recitation sections:
Teaching Assistant: June Pan
(yp269@cornell.edu, 401D Uris Hall)
Attend only one:
(210) F 9:05 - 9:55am Rockefeller Hall 104
(211) F 10:10 - 11:00am Rockefeller Hall 104
O¢ ce hours:
T 9-10am TA, 401D Uris Hall
T 3-4pm, 446 Uris Hall
W 9-10am TA, 401D Uris Hall
R 3-4pm, 446 Uris Hall

Textbooks:
"Intermediate Microeconomics with Calculus", 1st edition, by Hal Varian (highly recommended, but strictly
speaking not required).
Regular 9th edition is almost the same, but equations are in appendices.
Regular 8th and 7th editions are almost the same as 9th but chapters numbers di¤er (because of some
missing chapters we will not use).
I gave several copies of the 8th edition to Uris Library to be put on short term loan.
A further source of practice problems is "Workouts in Intermediate Microeconomics - A Modern Approach",
8th edition, by Bergstrom and Varian.

Tentative outline of the course:

The exact schedule will be adjusted depending on how fast we are able to learn as the semester progresses.
Our philosophy will be to learn and understand how things work at a fundamental level even if that means
covering fewer topics, rather than rush through many more topics.

1. Introduction to the course; introduction to economic modelling

1
 2. Modeling preferences and constraints (ch.2-3)

3. Utility functions (ch.4)

4. Constrained optimal choices; demand functions (ch.5-6)

5. Market demand (ch.15)

6. Market equilibrium; equilibrium with taxes (ch.16)

7. Exchange, e¢ ciency, welfare theorems (ch.32)

8. Technology sets; production functions (ch.19)

9. Pro…t maximization (ch.20)

10. Cost minimization; cost curves (ch.21-22)

11. Supply functions (ch.23)

12. Market supply (ch.24)

13. Monopoly (ch.25)

14. Moral hazard; signaling; incentive compatible contracts (ch.38)

Evaluation:

Lecture participation: 5%

Homework problem sets: 25%

(after we cover each topic, about 9)
Homework submitted after TA starts covering the answers is checked but receives a score of zero. The
lowest homework score will be dropped.

Two prelim exams: 20% x 2

(during regular lecture times, announced well ahead of time)

and a …nal exam: 30%

(special time and room announced later online by the University Registrar’s O¢ ce)
If an exam is missed with a reasonable excuse, its weight will be distributed to the rest of the exams.
There will be no make-up exams.

Academic integrity code and other policies

Students are most tempted to violate these codes when they are concerned about their course grade. If you
are concerned to that degree, please speak with me, a TA, or an academic advisor.

Cornell’s Code of Academic Integrity and Cornell’s Campus Code of Conduct fully apply to this course:

2
 http://cuinfo.cornell.edu/Academic/AIC.html
http://www.dfa.cornell.edu/treasurer/policyo¢ ce/policies/volumes/governance/campuscode.cfm

In particular, please note that these policies imply that videotaping, photographing, audiotaping, or other-
wise making any picture or sound recording of an instructor is not permitted without the instructor’s written
consent. Moreover, students are not authorized to replicate, reproduce, copy or transmit such materials, or
derivative materials, including class notes, for sale or general distribution to others (including via commer-
cial or noncommercial web sites) without the written consent of the faculty, academic sta¤ member, or class
participant who is the original source of such materials.

"If you have a disability-related need for reasonable academic adjustments in this course, provide the
(Instructor, TA, Course Coordinator) with an accommodation letter from Student Disability Services. Students
are expected to give two weeks’notice of the need for accommodations. If you need immediate accommodations,
please arrange to meet with your (Instructor, TA, Course Coordinator) within the …rst two class meetings."

This course uses only the online registration system to handle all registration cases. That is, there is no
waiting list or ad hoc registration by the instructor. However, during the …rst weeks there are usually students
dropping the class and that should open some slots if you are still hoping to get in.