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Economics II

Code: 40096
Credits: 15
2026/2027
Degree programme Type Course
Economic Analysis OB 1

Contact lecturer

Name :
Amedeo Piolatto
Email :
amedeo.piolatto@uab.cat

Teaching staff

Esther Hauk
Luis Eduardo Rojas Duenas

Teaching staff (external to UAB)

Pau Roldán

Group languages

You can consult this information at the end of the document.

Prerequisites

No specific prerequisits.

Objectives

This  module  covers  the  second  part  of  the  core  in  modern  microeconomics  and  macroeconomics.  The  topics  seen   in  this  module  are  the  foundation  to  the  models  that  are  used  in  advanced   microeconomics and  macroeconomics.  The  section  on  microeconomics  formally  demonstrates,  through  advanced  mathematical  techniques,  the  existence  of  a  general  equilibrium  and  its  properties,  discussing  the  fundamental theorems  of  welfare  economics.  This  section  also  discusses  cases  where  classical  assumptions  fail  and  its  consequences.  The  section  on  macroeconomics  studies  mathematical  models  of  general  equilibrium  under uncertainty  and  their  implications  for  asset  evaluation.  This  section  also  provides  the  student  with  dynamic  programming  techniques;  these  techniques  are  the  necessary  tools  for  solving  dynamic  models. 

Learning outcomes

  • CA10 (Plan policy recommendations based on general equilibrium simulations.) Plan policy recommendations based on general equilibrium simulations.
  • CA11 (Judge the coherence of economic proposals by applying criteria of efficiency and equity.) Judge the coherence of economic proposals by applying criteria of efficiency and equity.
  • CA12 (Assess gender inequalities caused by economic shocks.) Assess gender inequalities caused by economic shocks.
  • KA16 (Identify the concept and properties of general equilibrium with production.) Identify the concept and properties of general equilibrium with production.
  • KA17 (Explain the fundamental theorems of well-being and their conditions.) Explain the fundamental theorems of well-being and their conditions.
  • KA18 (Compare market structures: monopoly, monopsony, monopolistic competition and oligopoly.) Compare market structures: monopoly, monopsony, monopolistic competition and oligopoly.
  • KA19 (Recognise the consequences of uncertainty on the general equilibrium.) Recognise the consequences of uncertainty on the general equilibrium.
  • KA20 (Differentiate neoclassical models of stochastic and deterministic growth.) Differentiate neoclassical models of stochastic and deterministic growth.
  • KA21 (Indicate the principles of dynamic programming applied to macroeconomics.) Indicate the principles of dynamic programming applied to macroeconomics.
  • SA12 (Interpret the incidence of the parameters on macroeconomic aggregates by means of computational calculation.) Interpret the incidence of the parameters on macroeconomic aggregates by means of computational calculation.
  • SA13 (Compare general and partial equilibrium results highlighting their differences.) Compare general and partial equilibrium results highlighting their differences.
  • SA14 (Structure economic policy problems within a general equilibrium model for numerical resolution.) Structure economic policy problems within a general equilibrium model for numerical resolution.
  • SA15 (Monitor the sensitivity of dynamic programming results to parameter variations.) Monitor the sensitivity of dynamic programming results to parameter variations.
  • SA16 (Summarise market power findings in executive reports.) Summarise market power findings in executive reports.
  • SA17 (Detect the influence of stochastic shocks through simulations.) Detect the influence of stochastic shocks through simulations.
  • SA18 (Predict the trajectory of macro variables with calibrated DSGE models.) Predict the trajectory of macro variables with calibrated DSGE models.

Contents

I. Microeconomics  II  


1.Introduction to General Equilibrium 



2.Equilibrium and its Basic Welfare Properties



3.The Positive Theory of Equilibrium



4.The Core and Equilibria


5.Market Power


6.Adverse Selection, Signaling and Screening


7.The Principal Agent Problem


 


II. Macroeconomics  II 


1. Asset pricing


2. OLG with money


3. Sidrauski model


4. Cash-in-Advance model


5. Kiyotaki-Wright search theory


6. Imperfect information: Lucas’ Islands model


7. New-Keynesian monetary model


8. Monetary and fiscal policy


 


III. Macroeconomics III


1. Introduction


2. The IM model


3. The general equilibrium of the IM model


4. Optimal income taxation


5. Optimal income taxation in IM economies


6. Models of the labor market


7. Heterogeneous firms


For a detailed description of the content of this module go to https://sites.google.com/view/idea-program/master-program .


 

Learning activities and methodology

Title Hours ECTS Learning outcomes
Problems sets, tutorials 75 3
Personal study, study groups, textbook readings, article readings 187.5 7.5
Theory classes 112.5 4.5

The course will consist of sessions where the instructor presents the material, and sessions specifically dedicated to problem solving. Students are encouraged to form study groups to discuss assignments and readings.

The proposed methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.

 

Annotation: within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Assessment

Continuous assessment activities

Title Weight Hours ECTS Learning outcomes
Exam Part I 26% 0 0 CA10, CA11, CA12, KA16, KA17, KA18, KA19, KA20, KA21, SA12, SA13, SA14, SA15, SA16, SA17, SA18
Class Attendance and Problem sets and assignments 22% 0 0 CA10, CA11, CA12, KA16, KA17, KA18, KA19, KA20, KA21, SA12, SA13, SA14, SA15, SA16, SA17, SA18
Exam Part III 26% 0 0 CA10, CA11, CA12, KA16, KA17, KA18, KA19, KA20, KA21, SA12, SA13, SA14, SA15, SA16, SA17, SA18
Exam Part II 26% 0 0 CA10, CA11, CA12, KA16, KA17, KA18, KA19, KA20, KA21, SA12, SA13, SA14, SA15, SA16, SA17, SA18

 

This modul does not contemplate an evaluation from a single comprehensive exam

 

  Exam Part I

26%  

 Exam Part II

26%  

 Exam Part III

26%  

Problem  sets,   assignments  & Class  attendance    and    active    participation

22%  

The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses. 

In this course, the use of Artificial Intelligence (AI) technologies is not permitted in any of its phases. Any work that includes fragments generated with AI will be considered a breach of academic honesty and may result in a partial or total penalty to the activity's grade, or more severe sanctions in serious cases.

   

   

Bibliography

Microeconomics II:

Mas-Colell, A, M. Whinston and J. Green, Microeconomic Theory, Oxford University Press

 

Macroeconomics II:

Blanchard, O. and Fischer, S., Lectures on Macroeconomics 

Walsh, C,  Monetary Theory and Policy by (W), MIT Press

 

Macroeconomics III:

Ljungqvist, L. and T. Sargent, Recursive Macroeconomic Theory, MIT Press

Stokey, N. L., and R. E. Lucas, Recursive Methods in Economic Dynamics, Harvard University Press

 

Additional references will be provided during the course.

Software

  • Matlab
  • R
  • Phyton
  • Stata

Course groups and languages

The information provided is provisional until November 30. After this date, you will be able to consult the language of each group through this link. To access the information, you will need to enter the course CODE

Type of teaching Group Language Semester Shift
(TEm) Theory (master) 30 English second semester morning-mixed
(PLABm) Practical laboratories (master) 30 English second semester morning-mixed