The central topic of this course is the theory of general equilibrium and its applications and extensions. We will start with the basic theory including existence and optimality of equilibrium. We will then discuss the core; Arrow's impossibility theorem; externalities and public goods; intertemporal competitive equilibrium and insurance; and incomplete markets. We will consider some second-best issues.
The grade for this class is entirely determined by the score on the final exam. Students also complete problem sets in preparation for the final and for practice in application of course concepts. Student work on problem sets is not graded. Problem sets are included in this site in the assignments section.