Microeconomics

Understand microeconomic theory along with its applications and develop proficiency in econometric tools with the aim of designing effective policies

Type

Functional

Competency Area

Public Policy

Levels

Understand basic concepts in microeconomics

Understands microeconomic concepts to examine when and how the government should introduce a policy intervention

Demonstrates knowledge of the basic theories, concepts, terminology of microeconomics (opportunity cost; incentives; trade-offs; markets and market failure)

Synthesises the application of microeconomic models to derive predictions related to different public policies (microeconomic simulation models, discrete choice models, etc.)

Recognise application of concepts in microeconomics

Recognises microeconomic frameworks for the analysis of public policy

Applies concepts used in microeconomic theory to analyse issues of current economic policy and of drawing on relevant economic evidence to formulate policy advice

Determines the limitation of traditional models in terms of the assumptions, the behavioural responses to policy, etc.

Develop microeconomic models and tools

Evaluates circumstances (political environment, public sentiment, resource availability, etc.) under which policy intervention needs to be implemented

Develops microeconometric tools that can be used in finding evidence for public policy analysis (causal inference, randomized experiments, matching, difference-in-difference, instrumental variables, and regression discontinuity designs, etc.)

Formulates microeconomic models to derive predictions related to different public policies (microeconomic simulation models, discrete choice models, etc.)

Rationalise the use of microeconomics in public response to policy

Rationalises the impact of microeconomic policy interventions on macroeconomic outcomes

Administers the use of microeconomic tools in deriving solutions to policy issues (the number of subsidies and taxes, tariffs, rules competition policy, environmental policy, price controls, regulations, etc.

Promotes the use of novel microeconomic models based on evidence-based academic research to improvise policy impacts (eg: use of behavioural economics, neural networks, etc.)