## Course Code & Number:

ECON 416

## Course Title:

General Equilibrium & Welfare Economics

## Credits:

(3+0+0) 3 TEDU Credits, 6 ECTS Credits

## Catalog Description:

Theory of general competitive equilibrium from modern mathematical points of view. Basic concepts in welfare economics allowing an understanding of important economic factors affecting the level of social welfare. Tools of applied welfare analysis.

## Pre-requisites & Co-requisites:

Pre-requisites: ECON 212

Co-requisites: NONE

Required Reading:

1. Moore. J. C., General Equilibrium and Welfare Economics: An Introduction. Springer, New York, 2006.

Recommended Reading:

1. Starr. R.M., General Equilibrium Theory: An Introduction. 2nd Edition, Cambridge University Press, Cambridge, 2011.

Course Objective:

The aim of this course is to introduce students the theory of general competitive equilibrium from modern mathematical points of view. The course will provide an understanding of important factors affecting the level of social welfare.

Extended Description:

Detailed Analysis of Consumer Demand Theory. Identification of Pure Exchange Economies. Production Theory. Discussion of Fundamental Welfare Theorems. The Existence of Competitive Equilibrium. Examples of General Equilibrium Analysis. Comparative Statistics and Stability. The Core of an Economy. Discussion of General Equilibrium with Uncertainty.

Computer Usage:

Students will use MS Office applications (Word, Excel, Access, Powerpoint) to work on their weekly assignments about 2 hours a week.

Learning Outcomes:

Upon succesful completion of this course, a student will be able to

1. Explain consumer demand theory and production theory in mathematical, graphical and English terms.

2. Interpret the fundamental welfare theorems.

3. Solve simplified examples of general equilibrium problems.

4. Discuss comparative statistics and stability.

5. Solve general equilibrium models with uncertainty.

Planned Learning Activities and Teaching Methods:

Telling/Explaining

Discussion/Debate

Questioning

Reading

Peer Teaching

Demonstrating

Problem Solving

Case Study/Scenarion Analysis

Simulation & Games

Video Presentations

Oral Presentation

Guest Speakers

Web Searching

Assessment Methods and Criteria:

Test / Exam

Quiz/Homework

Written Project

Presentation (Oral/Poster)

## Prepared By:

Jülide Yıldırım Öcal