ECON 558Markets with Frictions

Catalog

This course explores markets with frictions. Classical economic theory cannot account for important issues such as the coexistence of money and credit or unemployment and vacancies, price dispersion, or intermediation. This course will explore these issues, and shed light on questions such as how do we trade in various markets, how does price dispersion occur, how are intermediaries emerged, why do we use credits, and how do agents exchange in over-the-counter-markets? This course is designed for the second year Master-level students. However, I welcome all who have good math skills or who are serious in building foundation or seeking challenging analytical economic materials. Format: lecture, exams