114-0902/01 – Theory of Economics (ET)

Gurantor departmentDepartment of EconomicsCredits20
Subject guarantorprof. Ing. Martin Macháček, Ph.D. et Ph.D.Subject version guarantorprof. PhDr. František Varadzin, CSc.
Study levelpostgraduateRequirementCompulsory
YearSemesterwinter + summer
Study languageCzech
Year of introduction2006/2007Year of cancellation2012/2013
Intended for the facultiesEKFIntended for study typesDoctoral
Instruction secured by
LoginNameTuitorTeacher giving lectures
BR150 doc. PhDr. Olga Březinová, CSc.
HAN60 prof. Ing. Jana Hančlová, CSc.
KUL20 prof. Ing. Lumír Kulhánek, CSc.
LOK02 Ing. Aleš Lokaj, Ph.D.
MAH11 prof. Ing. Martin Macháček, Ph.D. et Ph.D.
VAR10 prof. PhDr. František Varadzin, CSc.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 80+0
Part-time Credit and Examination 80+0

Subject aims expressed by acquired skills and competences

- critical assessment of orthodox and heterodox micro- and macroeconomic theory in its historical variations - comprehension of the economic agent behaviour by means of game theory and a formalized dynamic neoclassical theory - comprehension of the dynamic stochastic general equlibrium models and their applications and alternatives - competence in the exact modelling and analyzing the economic agent behaviour by means of advanced panel econometric methods

Teaching methods

Individual consultations


The aim of the course is to deepen the knowledge of economic theory gained from preceding intermediate microeconomics and macroeconomics courses, and to show how to critically evaluate competing modelling approaches and strategies. Attention is paid to both modern neoclassical economics and its heterodox alternatives, with a strong emphasis on the use of mathematically formulated economic models and advanced graphic tools.

Compulsory literature:

ROMER, David. Advanced Macroeconomics. 5th ed. McGraw-Hill/Irwin, 2019. ISBN 978-1260185218. VARIAN, Hal R. Intermediate Microeconomics: A Modern Approach. 9th ed., W. W. Norton & Company. New York, 2014. ISBN 978-0393919677. WICKENS, Michael. Macroeconomic Theory: A Dynamic General Equlibrium Approach. 2nd ed. Princeton University Press, 2012. ISBN 9781400842476.

Recommended literature:

COLANDER, David. (ed.) Post Walrasian Macroeconomics: Beyond the Dynamic Stochastic General Equilibrium Model. Cambridge: Cambridge University Press, 2006. ISBN 978-0-521-86548-7. FRANK, Robert H. Microeconomics and Behavior. 10th ed. McGraw-Hill. New York, 2021. ISBN 978-1259394034.

Way of continuous check of knowledge in the course of semester


Other requirements

Preparing two separate works after consultation with the supervisor.


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

Microeconomics I Circuit supervisor: prof. Mgr. Varadzin Francis, MD. Content definition: Basic concepts and approaches to decision making of individual economic entities. Traditional and alternative theories of consumer behavior. Dynamization models. Alternative approaches to the theory of production and the theory of firm behavior. Conventional and alternative concepts of costs. Properties profit function. Market systems - pricing, alternative approaches. Dynamization models and their comparison. Using game theory. Interaction markets, the theory of general equilibrium. The theory of welfare economics. Market failure and role of the state. Microeconomic theory of state policy. Economics of information - decision making under risk and uncertainty. II. Macroeconomics Content definition: Representative agent. Intertemporal optimization hypothesis and its macroeconomic applications. Model of capital accumulation, theory of Solow exogenous growth theory and neoclassical real business cycle. Models endogenous growth. Macroeconomics of imperfect competition. Fiscal theory: analysis of the effects of government spending and taxes in the neoclassical and new keynesovských models. Current account balance in a dynamic concept. Selected methodological problems of mainstream macroeconomics. III. International Economics Content definition: Methodological problems of economic categories used in the international economics. Differing views on the issues of economic schools international economic relations. The issue of "real" theory of international economic relations: theory balance of payments and the types of exchange rates, balance of payments and economic policy. Comparative issues in the global economy. Qualitative page comparisons - economic systems, criteria for comparison. Quantitative page comparisons - the systems of national accounts, macroeconomic transfer methods indicators. Internationalization processes in the global economy. IV. The methodology of economics Content definition: Method and methodology (scientific means and methods, the relationship methods logic and philosophy, the relation of methods, subject knowledge and language, truth and validity of knowledge). Procedures for the general methodology of science (language and definitions empirical assessments, hypothesis, deduction and induction, analysis and synthesis, abstraction, generalizations, scientific explanation, prediction). Theory of knowledge. Rationality (a concept rationality, rationality behavior, rationality reasoning). Methodology economics (the relationship of subject and method, the basic concepts and methods, comparison approaches to the subject of economics, philosophy of models: assumptions, creation, application, force). The role of subjective decision making. V. Economic Modelling and Econometrics Content definition: General principles of econometric modeling. Multi-factor regression. Point and interval prediction. Multicollinearity, heteroscedasticity and autocorrelation. The technique of artificial variables. System simultaneously dependent equations model (nature, form entries, estimation methods). Time series analysis. Cointegration analysis. VI. History of Economic Thought Content definition: The development of economic thought in classical economics. Mercantilism and kameralistika. Classical school of political economy and macroeconomic analysis. English and French branch branch classic school. Responding to the classical theory and its alternatives. Marginalismus and the emergence of neoclassical economics. The theory of partial economic equilibrium. General economic equilibrium theory. The Austrian subjective psychological school. American and Swedish marginalis. Theory of the firm and its development. J. M. Keynes and the emergence of Keynesian macroeconomics. Neokeynesian economics. Postkeynesiánská economics. The theory of economic growth theory socio-economic development. Historical School of Economics. Institutionalism, neoinstitucionalismus and new institutional economics. Neoliberalism. Chicago School and its development. Economic theory M. Friedman and monetarism. Human capital theory. Public choice theory. Basic concept of supply economics. The hypothesis of rational expectations. New Classical macroeconomics (NCM). New Keynesian macroeconomics (NCP).

Conditions for subject completion

Full-time form (validity from: 1960/1961 Summer semester, validity until: 2012/2013 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of pointsMax. počet pokusů
Exercises evaluation and Examination Credit and Examination 100 (145) 51 3
        Examination Examination 100  0 3
        Exercises evaluation Credit 45  0 3
Mandatory attendence participation:

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2012/2013 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2012/2013 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2011/2012 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2011/2012 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2010/2011 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2010/2011 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2009/2010 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2009/2010 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2008/2009 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2008/2009 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2007/2008 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan
2007/2008 (P6201) Economic Theory (6201V004) Economics P Czech Ostrava Compulsory study plan
2006/2007 (P6201) Economic Theory (6201V004) Economics K Czech Ostrava Compulsory study plan

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