General Equilibrium
Textbook: Debreu, Gerard. Theory of value: An axiomatic analysis of economic equilibrium. Vol. 17. Yale University Press, 1959.
Part I: Classical General Equilibrium Theory - Debreu's Theory of Value
August 16th Basics of Sets, Preorderings, Set topology in Euclidean space
Reading: Section 1.2, 1.4, 1.5, 1.6 (a-h)
August 23rd Set topology in Euclidean space, continuity of functions
Reading: Section 1.3, 1.6 (i-u), 1.7
August 30th Continuity of Correspondence, Convexity, Separating hyperplane, Sum of Sets, Production
Reading: Section 1.8, 1.9, 2, 3.1, 3.2, 3.3 (i - f')
September 6th Production, Consumption
Reading: Section 3.3 - 3.5, 4.1 - 4.6
Student Presentation: No-arbitrage theorem and Separating hyperplane theorem ( Reference )
September 13th Preference and Economy
Reading: Section 4.6 - 4.10, 5.1-5.6
Student Presentation: Economy with public goods (Reference)
September 20th Gale-Debreu-Nikaido Lemma and the existence proof
Reading: Section 5.6, 5.7
Student Presentations:
Non-free disposal (Reference)
Gramham's trade model in a general equilibrium framework (Reference)
September 27th Pareto Optimality: the existence and its relation to the competitive equilibrium
Reading: Section 1.9 ((5)-(8)), Section 4.9, Section 6
Part II: Topics in General Equilibrium Theory
October 11th Time and Uncertainty: Arrow-Debreu Economy and the Spot Market
Reading: Section 7, notes
Student Presentations:
Non-convexity of production set with the cost of information (Reference)
Radner's model of the sequential market (Reference)
October 18th Free Market and the Price-Taking Assumption
Reading: Debreu-Scarf (1963), notes
Additional Readings: Aumann (1964), Bewley (1973)
Student Presentations:
Core with indivisibility (Reference)
Core with indivisibility and some power relation (Reference)
October 25th Learning from Radner: Turnpike Theory and Economics of Teams
Readings: Radner (1961) , Arrow-Radner (1979), notes
Additional Readings:
On Turnpike Theory: Mckenzie (1976), Nikaido (1964), Bewley (1980)
On Economics of Teams: Marschak-Radner (1972)
November 1st Matching: Allocation of Indivisible Resources
Readings: Koopmans-Beckmann (1957), notes
Student Presentations:
Two-sided market and the role of price
From an optimal transportation view
November 8th Indeterminacy and Stability
Readings: notes, MWG 17.CDEFH
Student Presentations:
The stability problem via the Debreu-Mantel-Sonnenschein Theorem
Brown-Matzkin Theorem on the testability of equilibrium
November 15th General Equilibrium with Incomplete Markets (Part I)
Readings: notes
Student Presentations:
Economy with non-rational preferences
Economy under a given trading graph
An application of Scarf's computational algorithm for finding equilibria
November 29th General Equilibrium with Incomplete Markets (Part II)
Readings: notes
Student Presentations: