INTERMEDIATE ECONOMICS 2

This course explores Bayesian games and considers adverse selection and moral hazard at a more formal level. In macroeconomics, the course studies long-run fiscal policy (including pensions systems), aggregate investment, and modern theories of unemployment. Students examine notions of strategies, equilibrium, and beliefs in games and solve formal games, including dynamic games with asymmetric information. Students formalize an economic problem using the models presented and use the models to undertake analyses as well as understanding the long-run implications of fiscal policy. Students also analyse key issues such as sovereign debt and pensions reforms using a simple OLG model, and they examine key dynamic models of investment and how to use them to explain real issues.