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14.003

Microeconomic Theory and Public Policy

4-0-8 units · Graduate

Students master and apply economic theory, causal inference, and contemporary evidence to analyze policy challenges. These include the effect of minimum wages on employment, the value of healthcare, the power and limitations of free markets, the benefits and costs of international trade, the causes and remedies of externalities, the consequences of adverse selection in insurance markets, the impacts of labor market discrimination, and the application of machine learning to supplement to decision-making. Class attendance and participation are mandatory. Students taking graduate version complete additional assignments.

Fall 2025

14.03/003 is a fast-paced, interactive introduction to modern applied economics as it is lived, breathed, and practiced by academic researchers and policy analysts. You will master core tools of applied theory while learning how to frame and test causal relationships using research design, experimentation, and data analysis. In class and in the problem sets, you will read and we will discuss classic and contemporary research studies that put these pieces together.

Readings

Prerequisites & course information

Subject meets with 14.03 Prereq: 14.01 or permission of instructor G (Fall, Spring) 4-0-8 units

Sources