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ECON4240 - Equilibrium, welfare and information

Facts about this course:
Credits:10
Level:Advanced course at master's level
Teaching semester:Every spring semester
Examination semester:Every spring semester
Language of instruction:English
Administrated by:Department of Economics
Detailed course information - Current and previous semesters:

Course content

• General equilibrium analysis including the main welfare theorems
• An introduction to the economics of information, presenting models of moral hazard, adverse selection, and signalling.

Learning outcomes

Knowledge outcomes:
In the first part of the course students are expected to obtain knowledge of the result that a general equilibrium exists, and an understanding of the intuition underlying the main welfare theorems both in general and partial equilibrium analysis. In the second part of the course students are expected to learn the basic concepts and results of the economics of information. This part considers models of asymmetric information, and introduces the concepts of moral hazard, adverse selection, and signaling.

Skills:
The students should be able to do do welfare economics without use of marginal conditions. The students should realize that many forms of economic interaction involve problems of asymmetric information, and be able to differentiate between problems of moral hazard, adverse selection, and signaling. The students should be able to handle simple models that capture various kinds of informational asymmetry.

Admission

Students at UiO must apply for courses in StudentWeb.

International applicants, if you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures for international applicants.

The examination in this course is not available for external candidates. Only students admitted to the course may sit for the examination.

Prerequisites

Formal prerequisites

ECON3200 - Microeconomics and game theory / ECON4200 - Microeconomics and game theory

Recommended prior knowledge

ECON3120 - Mathematics 2: Calculus and linear algebra / ECON4120 - Mathematics 2: Calculus and linear algebra or similar courses.

Students that do not have the recommended background, can be allowed to take the course, provided that they have a good background in mathematics or other kind of abstract analysis.

Overlap

10 credits against SØK/ECON400 Microeconomic Theory. 5 credits against ECON4215 - Microeconomics. 5 credits against ECON3215 - Microeconomics.

Teaching

Lectures: 2 hours per week throughout the semester.

Seminars: 2 hours per week through parts of the semester.

There might occur weeks exempt from teaching.

Exam information

A 3-hour written school exam.

Exam resources

No special exam resources are allowed.

Language of examination

The problem set will be given in English. Answers can be given in Norwegian, Swedish, Danish or in English. See § 6.4 i Forskrift om studier og eksamener ved Universitetet i Oslo .

Assessment and grading

Course grades are awarded on a descending scale using alphabetic grades from A to E for passes and F for fail. Read more about the grading system .

An external auditor regularly evaluates the academic quality of the course, including the form of exam used on the course.

Explanations and appeals

Students can request an explanation of their grades, and can also appeal against their grades or make a complaint about formal examination errors. Read more about explanations and appeals

Possibility of make-up exams and re-takes

The Department of Economics has passed following resolution for ECON-courses: It will no longer be possible for candidates to register for an exam in a lower level course after having passed exams in intermediate and advanced level courses in the same subject area (also where there are no pre-requisites that apply to the intermediate course). Further information can be found here.

Students who might wish to retake the exam later, are not guaranteed that the course is ever repeated with a similar reading list, nor that the exam arrangement will be the same.

You can usually resit an exam, but the conditions depend on whether you had a valid reason for absence from the regular exam. Read more about resitting an exam .

Withdrawing from exams and limits on re-takes

A student can sit for this exam up to 3 times. If a student wishes to withdraw from the exam, s/he must do this in StudentWeb at least two weeks prior to the first day of the exam. Failure to do so will be counted as one of the three opportunities to sit for the exam.

Exam options for students with special needs

Students may apply for access to alternative exam resources or exam forms on the basis of chronic illness and/or special needs that create a marked disadvantage to other students in the exam situation. Mothers who are breastfeeding may apply for extra time to complete the exam.

Contact us

Department of Economics

Visiting address: 
Moltke Moes vei 31, Eilert Sundts house, 12th floor

Visiting hours: 
10.15-11.00 and 12.15-15.00

Postal address: 
P.O box 1095 Blindern
0317 Oslo

Phone: +47 22855127
Fax: +47 22855035
E-mail: 
Web: http://www.sv.uio.no/econ/english/