• Basic tools of analysis in economics
• The model of perfect competition and its elements
• Elasticities and their applications
• Taxes, subsidies and government intervention

• Why markets fail and what to do about it:

  • Market power
  • Asymmetric information
  • Externalities
  • Public goods
  • Herramientas básicas del análisis económico
  • El modelo de competencia perfecta y sus elementos
  • Las elasticidades y sus aplicaciones
  • Impuestos, subvenciones e intervención del gobierno

  • ¿Por qué los mercados fallan y que podemos hacer al respecto?:

  • Poder de mercado

  • Información asimétrica

  • Externalidades

  • Bienes públicos

Week 1: Introduction
Scarcity, opportunity cost, efficiency and equity, how are resources allocated in reality? Theories, models and assumptions. Model I of international trade: how countries trade what they have? Model II of international trade: how countries specialize? Some useful economic concepts.

Week 2: The Demand
The market. The model of perfect competition. Other market structures. The demand (I): Introduction. The demand (II): The unit-demand case. The demand (III): The general case. Marginal utilities. Market demands. Linear demands. Movements and shifts.

Week 3: The Supply
The unit-supply case. The costs. The general case. Movements and shifts. Elasticities (I): Definitions. Elasticities (II): applications.

Week 4: The equilibrium
Definition. The relevance of the equilibrium: logical and experimental support. Applications of the equilibrium (I): comparative statics. Applications of the equilibrium (II): welfare analysis. Measuring welfare. Estimating demand and supply in reality.

Week 5: Government intervention
Regulated prices. Taxes (I): classification. Taxes (II): analysis. Taxes (III): welfare. Taxes (IV): the incidence of a tax. Taxes (V): formal analysis.

Week 6: Market failures (I)
Introduction to market failures. Market power (I): definition. Market power (II): a model. Market power (III): welfare analysis. Market power (IV): comparative statics. Market power (V): barriers to entry. Market power (VI): solutions. Asymmetric information. Adverse selection. Moral hazard.

Week 7: Market failures (II)
Externalities (I). Classification of externalities. Externalities (II) Private solutions to externalities. Externalities (III) Public solutions to externalities. Public goods (I): definition. Public goods (II): analysis.

"It is an excellent course to improve and develop your knowledge in Economics."- Previous student