14.03 | Fall 2016 | Undergraduate, Graduate

Microeconomic Theory and Public Policy

Lecture Notes

1 Introduction and a first application: The minimum wage debate Lecture 1 Notes (PDF)
2 Causal inference in economics, with an application to the minimum wage debate Lecture 2 Notes (PDF)
3 Axioms of consumer preference and the theory of choice Math tools Lecture 3 Notes (PDF) Math Tools for 14.03 / 14.003 (PDF)

4 Utility maximization Lecture 4 Notes (PDF)
5 The expenditure function, with an application to gift giving Lecture 5 Notes (PDF)
6 Demand functions: Income effects, substitution effects, and labor supply Lecture 6 Notes (PDF)
7 Linking compensated and uncompensated demand: Theory and evidence Lecture 7 Notes (PDF)
8 Parts 1 & 2: Applying consumer theory to competitive markets-The United States sugar program Lecture 8 Part 1 Notes (PDF) Lecture 8 Part 2 Notes (PDF)

Lecture 8 Notes for Class Prep (PDF)

9 Applied competitive analysis: A second example Lecture 9 Notes (PDF)
10 General equilibrium in a pure exchange economy Lecture 10 Notes (PDF)
11 Applying the GE framework to consumer markets: Fishing in the State of Kerala, India Lecture 11 example: Taxation versus lump sum transfers in the Edgeworth box

Lecture 11 Notes (PDF)

Lecture 11 Example Notes (PDF)

12 International trade and the principle of comparative advantage Lecture 12 Notes (PDF)
13 The gains from international trade: Empirical evidence using the method of instrumental variables Lecture 13 Notes (PDF)
14 Why is free trade controversial? Theory and evidence Lecture 14 Notes (PDF)
15 Does trade raise national income? The method of Instrumental Variables

 No notes available. 
16 Uncertainty, risk preference, and expected utilit theory Lecture 16 Notes (PDF)
17 The market for risk Lecture 17 Notes (PDF)
18 Two applications of risk and safety regulation: Airplane seats for infants and the value of a statistical life Lecture 18 Notes (PDF)
19 Causal inference using regression discontinuity design Lecture 19 Notes (PDF)
20 Education, human capital, and labor market signaling Lecture 20 Notes (PDF)
21 Signaling and statistical discrimination: An application to “Ban the Box” legislation Lecture 21 Notes (PDF)
22 Private information, adverse selection and market failure Lecture 22 Notes (PDF)
23 Adverse selection, risk aversion, and insurance markets Lecture 23 Notes (PDF)

Course Info

As Taught In
Fall 2016
Learning Resource Types
Lecture Notes
Problem Sets with Solutions
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