Introductory Microeconomics for Public Policy I

Lectures and Readings

  1. Intro, Supply and Demand [notes]
    • GLS, Chapters 1 and 2, skimming 2.5
    • multiple equilibria in the vanilla market, courtesy of NPR
  2. Supply and Demand and Policy [notes]
  3. Elasticity [notes]
    • GLS, Section 2.5
    • Consider elasticity of demand when analyzing this policy
  4. Consumer Behavior [notes]
  5. Individual and Market Demand
    • GLS, Chapter 5. Omit income Engel curves from 5.1, and inferior goods and Giffen goods at the end of 5.3.
  6. Tax Incidence
    • Gruber, Chapter 19, pages 557-586
    • limited coverage of 19.4
    • great policy example of sugary drinks
    • the corporate tax as yet another application of the policy importance of this topic
    • In class problem
  7. Midterm
  8. Producer Behavior
    • In class problem
    • GLS, Chapter 6. Omit technological change.
  9. Costs
    • GLS, Chapter 7
  10. Supply in a Competitive Market
    • GLS, Chapter 8, but not 8.5
  11. Market Power and Monopoly
    • In class problem
    • GLS, Chapter 9; omit Lerner Index
    • For those interested in price fixing, an example
  12. Externalities and Public Goods
    • GLS, Chapter 16, sections 16.1 and 16.2 (pages 643-665); Gruber, Chapter 7, pages 184-189; Rosen and Gayer, Chapter 4, pages 54-70
    • Two podcasts on public goods
      • Lighthouses, Autopsies, and the Federal Budget, [link]
      • How to Stop an Asteroid, [link]
  13. Social Insurance
    • Gruber, Chapter 12, pages 321-351
  14. Exam 2
    • Notes, as needed