This course is a required course in the graduate microeconomic theory sequence. It will cover classical general equilibrium theory and other tools of market analysis that are not dependent on non-cooperative game theory. Announcements about readings, problem sets, etc. are on the Welcome page.
- Become familiar with the basic concepts and principles of general equilibrium theory, including its assumptions and limitations.
- Become acquainted with the tools of general equilibrium analysis. In particular, linear programming and convex analysis will be useful for much of what is covered. Be able to use the basic tools of convex analysis to prove simple theoretical results.
- Learn how GE analysis has been applied, for instance, in international trade. Be able to analyze simple Ricardian and Hecksher-Ohlin models, etc.
- Learn the fundamental results of the Arrow-Debreu model: existence and the welfare theorems. Be able to compute equilibrium prices and allocations in analytically tractable examples.
- Be able to critically discuss the economist's approach to welfare and social justice.
- Apply the Arrow-Debreu model to markets with uncertainty, and use it to discuss market failures and incomplete markets.
- Become acquainted with the extensions of GE thinking to non-classical markets such as matching markets. Solve matching problems with lp's and be able to interpret primal and dual solutions. Understand how these models relate to Walrasian models.
Course grades will be determined as follows: participation (40%), problem sets (10%), one prelim (10%), and a final exam (40%). Grades will be assigned in accordance with Cornell's official grading policy.
Each student in this course is expected to abide by the Cornell University Code of Academic Integrity. Any work submitted by a student in this course for academic credit will be the student’s own work. You are encouraged to familiarize yourself with Cornell's academic integrity policies. Please read The Essential Guide to Academic Integrity at Cornell. Selling course materials is a copyright infringement. Original course materials are intellectual property that belong to the author and are not a student’s property to sell.
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| Email: | Please remember to put 6100 in the subject of your email. Otherwise we might not find it for days. | |||
| Prelim: Mon 24 Mar | ||||
| Final Exam: | The final exam schedule can be found here when it becomes available. |
I have online access to SDS letters regarding accommodations for exams and other course matters, and will honor these accommodationsas far as possible. Per SDS recommendation, we ask that for exam accommodations you inform the instructor one week beforehand. For accommodations relating to problem sets, please let the TA know by Tuesday evening for a given Friday's problem set. The same deadlines apply for religious accommodations.
Last Modified: <2025-04-28 17:49:45>