# 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 2****7****th** 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 ****29****th** General Equilibrium with Incomplete Markets (Part II)

Readings: notes

Student Presentations: