NORTH CAROLINA A&T STATE UNIVERSITY
DEPT. OF AGRICULTURAL ECONOMICS AND RURAL SOCIOLOGY

Instructor: Anthony Yeboah; Ph.D. Economics

24-A C.H. Moore Agricultural Research Facility

Phone:(336)334-7070

Fax: (336) 334-7658

Course Objective: To provide students with a comprehensive knowledge in modern microeconomics by providing intuitive explanations of the principal results and by stressing the common mathematical structures (such as maximizing behavior and equilibrium properties) of many economic problems.

Texts:

1. Walter Nicholson, Microeconomic Theory.

2. G.S. Becker, Economic Theory

3. Henderson and Quandt, Microeconomic Theory

Supplementary Reading

1. Friedman, Price Theory

2. Stigler, The Theory of Price

3. Hicks, Value and Capital

Abbreviations

AER: American Economic Review

JPE: Journal of Political Economy

QJE: Quarterly Journal of Economics

EJ: Economic Journal

NOTE: Readings marked with an asterisk (*) are recommended; the others are required.

PART ONE

I. Introduction and Methodology

1. Becker, Economic Theory, Ch. 1, pp. 1-7

2. Friedman, "The Methodology of Positive Economics," Essays in Positive Economics. (Reprinted in Breit & Hochman, Readings, pp. 23-47.)

*3. Nagel, "Assumptions in Economic Theory," AER, May, 1963 (Proceeding), pp 211-219. (Reprints in Breit and Hochman.)

4. Alchian, "Uncertainty, Evolution, and Economic Theory," JPE, June, 1950,pp 211-221.

5. Baumol, "Economic Models and Mathematics," in The Structure of Economic Science, Krupp, ed.

II. Consumer Choice and Demand Theory

A. Fundamentals of Demand

1. Becker, Economic Theory, Ch. 2-3, pp. 11-56

2. Friedman, M., Price Theory, Ch. 2, pp. 12-55

3. Stigler, The Theory of Price, Ch. 4, pp. 46-83.

4. Hicks, Value and Capital, pp. 11-52, *pp. 303-314.

*5. Ferguson, Microeconomic Theory, Ch. 2-3, pp. 35-127

6. Henderson and Quandt, Microeconomic Theory, Ch. 2, pp. 6-42, 383-410, 293-309.

7. Allen, R.G.D.,Mathematical Analysis for Economists, Sections 11.9, 12.6 - 12.8, 13.4 - 13.6, 19.5, 19.7.

*8. Friedman, "The Marshallian DEmand Curve," JPE, Dec., 1949. (Reprinted in Breit and Hochman, Ch. 7.)

9. Burns, M., "A note on the Concept and Measurement of Consumer's Surplus," AER, June, 1973, pp. 335 - 344.

*10. Slutsky, E., "On the Theory of the Budget of the Consumer," (in AEA, Readings in Price Theory, pp.27 - 56).

*11. Samuelson, Foundations of Economic Analysis, Ch. 5, pp. 90 - 117.

12. Becker, G.S., "A Theory of the Alloction of Time," EJ , Sept. 1965, pp. 493 - 517.

*13. Pollak, R.A. and Wachter, M.L., "The Relevance of the Household Production Function and its Implications for the Allocation of Time," JPE, April 1975, pp. 255 - 277.

*14. Lancaster, K., "A New Aproach to Consumer Theory," JPE, April 1966, pp. 132 - 157.

15. Working, E., "What Do Statistical Demand Curves Show?," QJE, Feb. 1927. (Reprinted in Readings in Price Theory, pp. 97 - 115.)

16. Houthakker, H.S., "New Evidence on Demand Elasticities," Econometrica, Vol. 33 (April 1965), pp. 277 - 288.

*17. Stigler, "The Development of Utility Theory," JPE, August and October 1950. (Reprinted in Essays in the History of Economics.)

*18. Houthakker, "The Present State of Consumer Theory," Econometrica, October 1961.

*19. Brown, A. and Deaton, A., "Models of Consumer Behavior," EJ, Dec. 1972, pp. 1145 - 1236.

 

B. Choice Under Uncertainty and Imperfect Information.

1. Becker, Economic Theory, Ch. 4, 57 - 66.

*2. Friedman, Price Theory, Ch. 4, pp. 68 - 73.

*3. Friedman and Savage, "The Utility Analysis of Choice Involving Risk," JPE, Vol. 56. 1948. (Reprinted in Readings in Price Theory, pp. 57-96.)

*4. Henderson and Quandt, Microeconomic Theory, Ch.2, pp. 42-49.

*5. Hirshleifer, J. "Investment Decisions Under Uncertainty--Choice Theoretic Approach," QJE, Nov. 1965.

*6. Bear, "The Relationship of Saving to the Rate of Interest, Real Income and Expected Future Prices," Rev. Econ. and Stat., Feb. 1961.

7. Stigler, G., "The Economics of Information," JPE, June 1961, pp. 213-225.

8. Nelson, P., "Advertising as Information," JPE, July/August 1974, pp. 729-754.

III. Supply Analysis and the Theory of the Firm

A. The Nature of Costs and the heory of the Firm

1. Becker, Economic Theory, Ch. 5, pp. 69-88

2. Coase, "The Nature of the Firm," Econometrica, 1937. (Reprinted in Reading in Price Theory, pp. 331-351.)

3. Stigler, G., Theory of Price, Ch. 6, pp. 104-120.

4. Coase, "The Problem of Social Cost," JLE (ct. 1960). (Reprinted in Reading in Breit and Hochman, Readings, pp. 423-456.)

*5. Alchian and Demsetz, "Production, Information Costs nd Economic Organization," AER Dec. 1972, pp. 777-795.

B. Production, Cost and Revenue Functions

1. Becker, Economic Theory, Ch. 7, pp. 113-143.

2. Stigler, The Theory of Price, Ch. 7-8.

3. Hicks, Value and Capital, Ch. 6-7.

4. Friedman, Price Theory, Ch. 5-6, pp. 74-147.

*5. Ferguson, Microeconomic Theory, Ch. 5-6, pp. 133-206.

6. Henderson and Quandt, Microeconomic Theory, Ch. 3, pp. 52-101, 309-313.

7. Allen, R.G.D., Mathematical Analysis for Economists, Sections 11.8, 12.6 - 12.9, 13.4 - 13.7.

*8. Carlson, A Study on the Pure Theory of Production, Ch. 3-4.

*9. Samuelson, Foundations of Economic Analysis, Ch. 4.

10. Baumol, "Activity Analysis in One Lesson," AER (Dec. 1958).

*11. McFadden, D.L., "Cost, Revenue, and Profit Functions," in An Econometric Approach to Production Theory, ed. by D.L. McFadden, Amsterdam: North Holland, 1972.

*12. D. Ethridge, "The Inclusion of Wastes in the Theory of the Firm," JPE, Nov.- Dec. 1973.

13. Griliches, Z., "Hybrid Corn and the Economics of Innovation," Science, Vol. 132 (July 29, 1960), pp. 275-280.

14. Mansfield, D., "The Speed of Response of Firms o New Techniques," QJE, May, 1963, pp. 290-311.

15. Walters, A.A., Production and Cost Functions: An Econometric Survey," Econometrica, Jan., 1963, pp. 1-66.

IV. Partial Equilibrium Analysis

A. Price, Quantity and Market Organization.

1. Becker, Eonomic Theory, Ch. 6, pp. 89-110.

2. Stigler, The Theory of Price, Ch. 10-13, pp. 176-238.

*3. Ferguson, Microeconomic Theory, Ch. 9-10, pp. 284-316.

*4. Henderson and Quandt, Microeconomic Theory, Ch. 4, pp.103-151.

5. Barsel, "A Theory o Rationing by Waiting," J. of Law and Econ. April 1974.

6. Demsetz, H.,"The Exchange and Enforcement of Property Rights," J. of Law and Econ., Oct. 1964, pp. 11-26.

7. Morhing, H., "The Peak Load Problem with Increasing returns and Pricing Constraints, "AER, Sept, 1970, pp. 693-705.

8. Harberger, "Monopoly and Resource Allocation," Papers and Proceedings, AER (May 1954).

9. Devany, A., "Uncertainty, Waiting Time, and Capacity Utilization: A Stochastic Theory of Product Quality," JPE 84:523-542, June 1976.

*10. Telser, L., "Advertising and Competition," JPE, Dec. 1964.

*11. Stigler, G., "The Optimal Enforcement of Laws," JPE, May 1970, pp. 526-536.

*12. Stigler, "Perfect Competition, Historically Contemplated," JPE, Feb. 1957.

 

PART TWO

I. Factors of Production

A. Demand for Factor Services and Marginal Productivity

1. Becker, Economic Theory, Ch. 8, pp. 135-155.

2. Friedman, Price Theory, Ch. 9, pp. 176-200

3. J.R. Hicks, The Theory of Wages, 2nd ed., St. Martin's Press, 1964, Chs. 1-2 and Appendix iii, pp. 241-246.

4. J.R. Hicks, Value and Capital, pp. 319-323.

5. R.G.D. Allen, Mathmatical Analysis for Economists, 11.8, 12.7, 12.8, 12.9, 13.7

6. Friedman, Price Theory, Ch. 7, pp. 153-165.

7. Henderson and Quandt, Microeconomic Theory, Ch. 3, pp. 52-102.

8. R.F. Muth, "The Derived Demand Curve for a Productive Factor and Industry Supply Curve," Oxford Economic Papers, July 1964.

9. A. Razin, "A Note on the Elasticity of Derived Demand Under Decreasing Returns," AER, Sept. 1974, pp. 697-700.

10. M. Syrquin, "A Note on Inferior Inputs," Rev. of Econ. Studies, 37:591-598.

11. Sato and Hoizumi, "Sustainability, Complementarity and the Theory of Derived Demand," Rev. of Econ. Studies, Jan. 1970, pp. 107-118.

B. Supply of Factor Services (Labor Services and Human Capital).

1. Becker, Economic Theory, Ch. 9, pp. 159-183.

2. Hicks, Theory of Wages, Ch. V, pp. 89-111.

3. Friedman, Theory of Wages, pp. 201-212.

4. T.W. Schultz, "Investments in Human Capital," AER, March 1961.

5. Becker, Human Capital, Columbia University Press, 2nd ed. Ch. I-II.

6. J. Mincer, "Labor Force Participation of Married Women," In Aspects of Labor Economics, ed. by H.G. Lewis. Universities--National Bureau Conference Series No. 14, Princeton, N.J., Princeton U. Press, 1962.