ECON 510: Advanced Microeconomic Theory

Fall 2026 - Section 002

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Instructor: Sérgio O. Parreiras

Email: sergiop@unc.edu (use Canvas Inbox)

Office: Gardner Hall, Room 200B

Class Time: TuTh 12:30 PM - 1:45 PM

Location: Gardner Hall, Room 309

Office Hours: Mon-Wed-Fri 9:00 AM - 10:00 AM via Zoom (by Canvas appointment)

Canvas: https://uncch.instructure.com/courses/125271

Course: ECON 510 Section 002 - Advanced Microeconomic Theory (3 Credits)

Term: Fall 2026

Prerequisite: ECON 410 with a grade of C or better

Grading Status: Letter grade

Course Description
We study decision-making in dynamic environments under uncertainty. Topics include optimization techniques, recursive and hyperbolic preferences, intertemporal consumption, general equilibrium in complete and incomplete markets, search theory, repeated and markovian games. Emphasis is placed on model building, presentations, and discussions in support of the individual research project.
Learning Objectives

The course main goal is to provide tools to enable you to:

  • Construct models of micro-economic behavior in dynamic environments
  • Identify their (built-in) limitations
  • Think critically about how to apply them to real-life

We will also write a research essay/proposal/project aimed at the learning outcomes described by the IDEAS in action (Research) curricula.

The Canvas website is our primary means of communication. Assignments, readings, grades, podcast links and other resources will be posted on Canvas.

Canvas messages are responded within 48 business hours (Monday through Friday). Outlook messages are not recommended.

For office hours (OHs): Use Canvas > Calendar > Find Appointment. You must sign in with SSO login option at unc.zoom.us for OH meetings.

If your schedule conflicts with regular OHs, please send a Canvas message to schedule meetings outside of regular OH.

To request an in-person meeting, add "F2F" in the comments field when booking.

Textbook

Due to textbook affordability concerns, there is no required textbook. The course lecture notes will be our main reference source. Lecture notes, excerpts of books and articles (with free access through the University Libraries) will be posted/linked in the corresponding Canvas module.

Required Software/Apps
Mathematica

Order it free at https://software.unc.edu.

No prior knowledge of Mathematica is necessary for one to succeed in this course but, as Mathematica shall be used on a regular basis, make sure to install it on your laptop as soon as possible.

Zoom

Download the application from https://zoom.us/download.

The meeting https://unc.zoom.us/j/9733572701 shall be used in class for Tuesday's homework discussion and office hours meetings.

Overleaf

Open a free account at Overleaf.com and add sergiop@unc.edu as your collaborator.

Overleaf is required for assignments using LaTeX markup.

Respondus Lockdown Browser

Download the browser from https://oasis.unc.edu/service/respondus-lockdown-browser/.

This browser is required for all exams and quizzes. Make sure to use the test page provided in the link prior to using it for the first time.

Course Grade Weights
  • Midterms: 40%
  • Problem Sets and Quizzes: 20%
  • Final Exam: 20%
  • Active Participation: 5%
  • Research Assignments: 15%
Important Dates
  • Midterm 1: September 29, 2026
  • Midterm 2: November 3, 2026
  • Final Paper Due: December 1, 2026
  • Final Exam: Monday, December 7, 2026 at 4:00 PM (time differs from class time!)
Grading Scale
Letter Grade Minimum Score Letter Grade Minimum Score
A 95 C+ 77
A- 90 C 73
B+ 87 C- 70
B 83 D+ 67
B- 80 D 63

Note on Exam Grading: Exam grades are converted into scores ("curved") according to the formula: original grade plus 100 minus the maximum between the top class grade and 50. Assignments or problem sets are not "curved".

During this course, we may employ additional material from podcasts, video, or literature to discuss economics related issues. Sometimes, you may find the political or religious views; or the profanity contained in these materials offensive or objectionable and, you may feel uncomfortable.

I will not endorse or advocate any particular political views but as part of your university education, I wholeheartedly believe that it is important for us to engage in critical thinking while respecting different opinions.

Our classroom is an inclusive environment and your participation is critical for the success of this course. You are expected to attend class, read the assigned readings and, be prepared to discuss and present your work in the classroom.

Personal Hardship

If you are going through personal hardships that may interfere with your academic performance, please contact me as soon as possible. I am here to help you succeed in this course but we may run out of options if we act too late.

You are encouraged to use AI tools in this course within the following guidelines:

  • AI assistance is permitted for homework and projects only.
  • AI use is not allowed during exams or quizzes.
  • You must clearly cite any AI tool used.
  • If AI-generated content is substantial, include the original prompt alongside your citation.
  • You may be asked to present or explain your work, regardless of AI use.

AI tools can be especially helpful for debugging and explaining Mathematica code, but they may produce errors or “hallucinate” facts. Use critical judgment. For practical guidance on using AI effectively as a study aid, see Lutz Hendricks’ AI Study Assistant guide.

Syllabus Changes

I reserve the right to make changes to the syllabus including project due dates and test dates. These changes will be kept to the necessary minimum and announced as early as possible.

Communication Policy

Please use Canvas to send me messages instead of regular email. All assignments should be submitted on Canvas.

Honor Code

All students are expected to follow the guidelines of the UNC honor code. In particular, students are expected to refrain from "lying, cheating, or stealing" in the academic context. If you are unsure about which actions violate the honor code, please see me or consult https://catalog.unc.edu/policies-procedures/honor-code/.

Exams and Grades

Any final-exam rescheduling request, for those with more than three final exams within a 24-hour period, must be received no later than our first midterm.

Exam grades are converted into scores ("curved") according to the formula: original grade plus 100 minus the maximum between the top class grade and 50. Assignments or problem sets are not "curved".

Attendance Policy
University Approved Absences (UAA)

No right or privilege exists that permits a student to be absent from any class meetings, except for these University Approved Absences:

  1. Authorized University activities
  2. Disability/religious observance/pregnancy, as required by law and approved by Accessibility Resources and Service and/or the Equal Opportunity and Compliance Office
  3. Significant health condition and/or personal/family emergency as approved by the Office of the Dean of Students, Gender Violence Service Coordinators, and/or the Equal Opportunity and Compliance Office

Important: Eight non-UAA absences without any consultation with the instructor may result in a grade F in the course. Ten total non-UAA absences in a semester may result in a grade F regardless of the reasons you missed class.

In all instances, either UAA or non-UAA, you MUST notify the instructor prior to missing class. If a student misses a class, it is the student's responsibility to find out what was covered in the class and whether changes have been made on the schedule, and if there was any assignment given.

Attendance and participation are recorded in every class and posted to Canvas > Assignments > Participation on a weekly basis.

Accommodations

The University Compliance Office (UCO) Accommodations Team (Accommodations) receives requests for accommodations for disability, pregnancy and related conditions, and sincerely held religious beliefs and practices through the University's Policy on Accommodations. It determines eligibility and reasonable accommodations consistent with state and federal laws.

If you are eligible to take exams with accommodations, please schedule your exam using their hub at https://compliance.unc.edu/access-and-accommodations/testing-center/, and notify me as soon as possible.

Grade Appeal Process

If you feel you have been awarded an incorrect grade, please discuss with me. If we cannot resolve the issue, you may talk to our departmental director of undergraduate studies or appeal the grade through a formal university process based on arithmetic/clerical error, arbitrariness, discrimination, harassment, or personal malice. To learn more, go to the Academic Advising Program website.

Abbreviations: Problem set (PS); Quiz (Q)

Week Coverage Tuesday Thursday
1 Mathematica and Game Theory 8/18: Syllabus, Mathematica tutorial 8/20: Mathematica tutorial, Recipe #0 and Q01
2 Game Theory and Optimization 8/25: Econ. Theory methodology, Static games, PS01 due 8/27: Optimization (equality constraints) and Q02
3 Dynamic Games and Uncertainty 9/1: Optimization and Dynamic games, PS02 due 9/3: Uncertainty (ECON410 review) and Q03
4 Time Preferences and Information Structures 9/8: Exponential discounting, PS03 due 9/10: Filtrations and Recursive Preferences and Q04
5 Optimization 9/15: Optimization (inequality constraints), PS04 due 9/17: Optimization (inequality constraints) and Q05
6 Duality 9/22: The Value Function, PS05 due 9/24: Comparative Statics, Envelope theorem
7 Midterm 1. Intertemporal Choice 9/29: Midterm 1 10/1: Catching Up
8 General Equilibrium 10/6: Well-Being Day 10/8: Midterm 1 review, Complete Markets and Q06
9 General Equilibrium 10/13: Financial Markets, PS06 due 10/15: Fall Break
10 Incomplete Markets 10/20: Financial Markets, PS07 due 10/22: Arbitrage and Q07
11 Recursive Methods 10/27: Recursive Methods, PS08 due 10/29: Recursive Methods and Q08
12 Midterm 2. Search Theory 11/3: Midterm 2 11/5: Search Theory and Q09
13 Repeated Games 11/10: Repeated Games, PS09 due 11/12: Repeated games and Q10
14 Markov Games 11/17: Markov games, PS10 due 11/19: Markov games and Q11
15 Research Project 11/24: Research Project, PS11 due 11/26: Thanksgiving Recess
16 Research Project 12/1: Research Project, PS12 due —
Final — Monday 12/7: 4:00–7:00 pm, Final Exam