ECON4240 – Equilibrium, Welfare and Information
Course description
Course content
This course is being discontinued after spring 2019. The last exam is in fall 2019.
- 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 outcome
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 admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.
Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunns?konomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.
Prerequisites
Formal prerequisite knowledge
- Bachelor's degree in Economics, or equivalent.
- ECON3200 – Microeconomics and Game Theory (discontinued) / ECON4200 – Microeconomics and Game Theory (discontinued)
- Students on the master’s programme in Economic Theory and Econometrics (the 5-year programme) also need ECON3010 – Anvendt ?konomisk analyse.
Recommended previous knowledge
ECON3120 – Mathematics 2: Calculus and Linear Algebra / ECON4120 – Mathematics 2: Calculus and Linear Algebra or similar courses.
Overlapping courses
- 10 credits overlap with S?K/ECON400 Microeconomic Theory
- 5 credits overlap with ECON4215 – Microeconomics (discontinued)
- 5 credits overlap with ECON3215 – Microeconomics (discontinued)
- 5 credits overlap with ECON3220 – Microeconomics 3
- 5 credits overlap with ECON4220 – Microeconomics 3
Teaching
Lectures: 2 hours per week throughout the semester.
Seminars: 2 hours per week through parts of the semester.
Compulsory tuition activities:
- A compulsory term paper.
If the compulsory term paper is not approved, you may be given a second attempt to hand in a new term paper/improve the term paper within a short deadline.
When the compulsory term paper is approved, the result will be registered. The term paper will be valid for 8 consecutive semesters.
See The Faculty of Social Sciences' rules regarding compulsory tuition activities.
Candidates who have passed the course before autumn 2016 and wish to re-take the exam need to get the term paper approved before they can re-take the exam.
Absence from compulsory tuition activities
If you are ill or have another valid reason for being absent from compulsory tuition activities, your absence may be approved or the compulsory activity may be postponed.
Examination
A 3-hour written school exam.
You must have passed the mandatory activities in order to sit for the exam.
Exam papers with comments from examiner
Digital examination
The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.
Read more about written examinations using Inspera.
Examination support material
Students may use dictionaries at this exam. Dictionaries must be handed in before the examination. Please read regulations for dictionaries permitted at the examination.
Language of examination
The examination text is given in English.You may submit your response in Norwegian, Swedish, Danish or English.
Grading scale
Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.
Explanations and appeals
Resit an examination
If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.
See also our information about resitting an exam.
Withdrawal from an examination
It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.
Special examination arrangements
Application form, deadline and requirements for special examination arrangements.