General Equilibrium

Syllabus

Textbook: Debreu, Gerard. Theory of value: An axiomatic analysis of economic equilibrium. Vol. 17. Yale University Press, 1959.

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

Additional Reading: No-arbitrage theorem and Separating hyperplane theorem ( Reference )

September 13th Preference and Economy

Reading: Section 4.6 - 4.10, 5.1-5.6

Additional Reading: Economy with public goods (Reference)

September 20th Gale-Debreu-Nikaido Lemma and the existence proof

Reading: Section 5.6, 5.7

Additional Reading:

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