General Economics and Theory
This is a complete listing of all economics courses. Not all courses are offered each year.
Click here for a list of currenly offered courses.
14.102 Mathematics for Economists
Prereq: 18.01, 18.02, 18.06
Covers some topics in mathematics that are frequently used in economic theory and in applications. Topics include 1)
optimization theory (including optimal control and recursive methods); 2) probability theory; 3) topology (continuity
compactness); 4) dynamical systems (including stability); 5) convex analysis; 6) fixed point theory. Presentation of
each topic self-contained.
14.121 Microeconomic Theory I
Prereq: 14.04 and permission of instructor
Theories of production and individual choice (under certainty and uncertainty); markets and competition; tools of
comparative statics and their application to price theory. Class size limited.
14.122 Microeconomic Theory II
Prereq: 14.121 and permission of instructor
Introduction to game theory. Class size limited.
14.123 Microeconomic Theory III
Prereq: 14.121, 14.122 and permission of instructor
General equilibrium, capital theory, incomplete markets, externalities, public goods. Class size limited.
14.124 Microeconomic Theory IV
Prereq: 14.123 and permission of instructor
Decision making under uncertainty, information economics, incentive, and contract theory. Class size limited.
14.125 General Equibilrium
Prereq: 14.04
Topics include Arrow-Debreu economies, general equilibrium economies with incomplete markets, informational asymmetries,
increasing returns, imperfect competition. Mathematical techniques to study existence, regularity, welfare properties of
equilibria. Applications provided with special emphasis on financial markets, fiscal policy, and regulation.
14.126 Game Theory
Prereq: 14.122
How should economic agents act when their optimal decisions depend on what they expect other agents to do? We study various
models of equilibrium, which correspond to different ways that the agents might make their decisions, and various kinds of
games----static games, dynamic games, and games of incomplete information.
14.127 Economics and Psychology (Revised Content)
Prereq: 14.124
Surveys research which incorporates psychological evidence into economics. Prospect theory. Biases in probabilistic
judgment. Self-control and mental accounting with implications for consumption and savings. Fairness, altruism, and public
goods contributions. Financial market anomalies and theories. Impact of markets, learning and incentives. Some evidence on
memory, attention, categorization and the thinking process.
14.129 Contract Theory
Prereq: 14.121, 14.451
Recent developments in contract theory. Includes hidden action and hidden information models, dynamic agency issues,
incomplete contracts, and applications of contract theory to theories of the firm and corporate financial structure.
14.147 Topics in Game Theory (Revised Units)
Prereq: 14.126
Advanced subjects on topics of current research interest.
14.191 Independent Research Paper
Prereq: Permission of instructor
Can be repeated for credit.
Under supervision of a faculty member approved by Graduate Registration Officer, student writes a substantial, probably
publishable, research paper. Must be completed by the end of the student�s second year to satisfy the departmental minor
requirement.
14.192 Supervised Research
Prereq: Permission of Instructor
Can be repeated for credit.
Student participates in research with an individual faculty member, with approval of the Graduate Registration Officer.
14.193 Seminar: Topics in Economics
Prereq: 14.121, 14.451
Can be repeated for credit.
14.194 Seminar: Topics in Economics
Prereq: 14.127 recommended
How insights from psychology improve our understanding of otherwise puzzling economic behaviors and guide empirical work.
Policy implications. The emphasis will be put on applications in finance (time series and cross-sectional predictability of
asset returns, closed end mutual funds, over- and under-reaction, impact of irrational traders in a world of limited
arbitrage; macroeconomics (bounded reality, nominal illusion, animal spirits, hyperbolic discounting and savings
behavior).
14.195, 14.196 Reading Seminar in Economics
Prereq: 14.121
Can be repeated for credit.
Reading and discussion of special topics in economics. Open to advanced graduate students by arrangement with individual
members of the staff.