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Columbia University
School of International and Public Affairs
U6300 Microeconomics for International and Public Affairs
Fall 2024
Office: 1308 IAB and by appointment
Section 1: MW 9:15–10:45, 411 IAB Section 4: TR 9:15–10:45, 413 IAB
Section 2: MW 11:00–12:30, 411 IAB Section 5: TR 11:00–12:30, 413 IAB
Section 3: MW 14:15–15:45, 411 IAB
Course Description: This course is the first part of a one-year economics sequence and focuses on mi-
croeconomics. The objectives of the course are (i) to provide you with the analytical tools that are needed
to understand how economists think and (ii) to help you to develop an open-minded and critical way of
thinking about economic issues. The course content also links to public policy and considers various appli-
cations and normative viewpoints. At the end of the course, you will understand the concepts that underlie
microeconomics models and the jargon used in the economic profession. Most importantly, you will be able
to critically assess arguments made in current policy debates.
Communication, Office Hours, and Attendance: Continual interaction with the subject matter is an
important component to your ultimate success. We will be available during office hours and if you are having
problems do not hesitate to get in contact with us. Most importantly feel free to email us with questions
or concerns you may have about the course or your success. Attendance of each lecture and recitation is
strongly recommended and incentivized but not required. If you do not attend class, you should be able to
take responsibility for the material you missed and ask your fellow students for class notes. For office hours
and locations please check the course’s CourseWorks website at https://courseworks2.columbia.edu.
Textbook:
? Austan Goolsbee, Steven Levitt, and Chad Syverson. “Microeconomics,” Worth Publishers.
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The book is recommended and intended to provide you with a complementary textbook that covers the ana-
lytical and intuitive elements of the lecture. Your reliance on the access to the textbook may be a necessary
condition for success in this course. Any edition or other intermediate microeconomics book is acceptable.
The book is available at the Columbia Bookstore and other retailers (Bookculture at 536 W 112th St., ama-
zon.com, borders.com, abebooks.com, etc.).
Course Reserve: The following texts will be on reserve in Lehman Library:
Austan Goolsbee, Steven Levitt, and Chad Syverson. “Microeconomics,” Worth Publishers.
Grading Policy: The graded coursework will consist of problem sets, two midterms, and a final exam.
Your final course grade will be determined as follows:
20% Assignments
25% Midterm 1 – Friday, 9/27
25% Midterm 2 – Friday, 11/1
30% Final – Friday, 12/131
At times students will be called upon to participate in discussions. I will expect students to participate in
these discussions, and at times, such participation may be included in final grades.
The lowest score of your problem sets will be dropped at the end of the semester. This accommodates
any unforeseen events that may occur and prevent you from submitting a problem set on time. In no
event a problem set will be accepted after the solutions have been posted.
Each exam is two hours. More specific details about exams will be given approximately a week before
exams are to be taken.
Failure to take any of the exams will result in a failing grade for the class. Please let me know by
September 19th if you cannot make any of the exams.
Excused absences from exams will be allowed only for serious medical problems, important university
affairs, or severe personal matters. You must notify me by email, as soon as possible and no later than
48 hours after an exam in order for me to even consider such a request.
If you are excused from a midterm but have not told me before September 17th, then a make-up
midterm will be scheduled during Finals Week in December.
Letter grades for the course will be assigned based on relative performance and SIPA’s policies and
according to the overall performance of all sections.
There will be no special treatment for any student. Special treatment refers to individual exceptions
that are not granted to other students who are in a similar situation (e.g., extra credit, extensions,
etc.).
Recitations: There are almost weekly recitations. The recitations are intended to give you an opportunity
to practice applying the concepts covered in lecture and to practice for exams. Each recitation covers the
1Time to be confirmed by the University Registrar.
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same material and you can attend your preferred recitation. For recitation times and locations please check
the course’s CourseWorks website at https://courseworks2.columbia.edu.
Homework: During the semester you will be assigned homework problem sets. Most problem sets are
handed in individually or by study groups depending on the type of assignment. You are highly encouraged
to work with any of your fellow students if not otherwise specified. However, do not copy or plagiarize
anybody’s work (classmates, answer keys, etc.).
Grading Appeals: Any requests for re-grading on an exam must be submitted in writing within one week
of when the exam is handed back or the score is posted on CourseWorks. A re-grading request should
include an argument for why you feel your answer was correct. I reserve the right to re-grade the entire
exam when a request to re-grade a specific question is made. If an administrative error has been made in
determining your score (such as an arithmetic or uploading error), then just bring it to my attention after
lecture. If you find a mistake or inconsistency on a provided answer key, please contact me as soon as possible.
Academic Misconduct: The Code of Academic & Professional Conduct Code defines academic miscon-
duct. Students are prohibited from committing or attempting to commit any act that constitutes aca-
demic misconduct. If there is any question about whether an act constitutes academic misconduct, it is
your obligation to clarify the question with me before committing or attempting to commit the act. The
Code of Academic & Professional Conduct Code and additional information about a common form of aca-
demic misconduct, plagiarism, is available at http://bulletin.columbia.edu/sipa/academic-policies/
academic-and-professional-conduct/.
Sanctions for Academic Misconduct: Any violation of academic integrity results in an incident re-
port that will be filed with SIPA’s Student Affairs and subject to the Dean’s Discipline Procedures as
well as a grade penalty such as a failing grade of “F.” Additional information can be found at http:
//bulletin.columbia.edu/sipa/academic-policies/discipline-procedures/index.html.
Generative Artificial Policy: You can use AI tools to check and correct language mistakes (e.g., Gram-
marly). Please refrain from using generative AI tools to draft emails you are sending me or submitting
coursework (e.g., ChatGPT). In all circumstances, please remember that you are assessed on understanding
and applying the course’s material and that human interactions facilitate learning.
Students with Disabilities: SIPA is committed to ensuring that students registered with Columbia Uni-
versity’s Disability Services (DS) receive the reasonable accommodations necessary for their full participation
in their academic programs. If you are a student with a disability and have a DS-certified accommodation
letter, please make arrangements with me in week 1 or as early as possible. Please contact and ask SIPA’s
DS liaison at disability@sipa.columbia.edu and/or 212-854-8690 to send me a letter confirming your recom-
mended accommodations.
Website: I will use the course’s CourseWorks website to disseminate scores, announcements, class material,
assignments, and other course documents. The website can be accessed through https://courseworks2.
columbia.edu. Announcements made on the website are considered modifications to the syllabus.
Similarities and Differences with U6400: Both U6300 and U6400 are applied intermediate microeco-
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nomics courses, which rely more heavily than undergraduate courses on real-world examples as a tool to
understand economic concepts and ideas. The topics covered in the two courses are the same. However,
U6400 is more calculus-based, the pace of the course is faster, and the workload is heavier. Which of the two
courses suits you better depends on your ability to work with mathematics and curriculum plans. Because
many economic arguments are easier to understand with mathematics, if you are comfortable with rigorous
logical reasoning, U6400 may be more comfortable than U6300. In most cases, you can choose whether to
take U6300 or U6400. However, because several programs, concentrations, or courses require you to take
U6400, please check with your program or concentration director to make sure you can choose.
Outline of Course Material: The schedule should be viewed as tentative and may be subject to change
throughout the semester. All readings refer to “Microeconomics,” by Austan Goolsbee, Steven Levitt, and
Chad Syverson (GLS).
1. Demand and Supply (GLS chapter 2)
Demand and supply curves · Elasticities of demand and supply · Market clearing condition · Comparative
statics
2. Analysis of Competitive Markets (GLS chapter 3)
Consumer and producer surplus · Government interference with market clearing: quota, price ceiling, mini-
mum price, price support, tax, and subsidy
3. Consumer Theory (GLS chapters 4 and 5)
Budget set · Consumer preferences: indifference curves and marginal rate of substitution · Optimal choice ·
Individual demand · Income and substitution effect · Government interventions
4. Producer Theory (GLS chapters 6, 7, and 8)
Production functions · Short-run and long-run cost minimization · Returns to scale · Cost functions ·
Economies of scale · Short-run and long-run profit maximization · Firm’s short-run and long-run supply
curves · Shut-down condition · Free-entry condition · Short-run and long-run equilibrium · Government in-
terventions
5. Introduction to Welfare Economics and General Equilibrium (GLS chapter 14)
Exchange economy · Pareto efficiency · Fundamental theorems of welfare economics
6. Market Failures I: Non-Competitive Markets (GLS chapters 9, 10, 11, and 12)
Market power · Monopoly · Game theory and competitive strategies · Duopoly · Economics of antitrust
7. Market Failures II: Externalities (GLS chapter 16)
Positive and negative externalities · Government interventions
8. Uncertainty and Insurance (GLS chapter 13)
Uncertainty · Preferences toward risk · Value of Information · Insurance
9. Market Failures III: Asymmetric Information (GLS chapter 15)
Moral hazard · Adverse selection