Course Code & Number:
General Equilibrium & Welfare Economics
(3+0+0) 3 TEDU Credits, 6 ECTS Credits
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
1. Moore. J. C., General Equilibrium and Welfare Economics: An Introduction. Springer, New York, 2006.
1. Starr. R.M., General Equilibrium Theory: An Introduction. 2nd Edition, Cambridge University Press, Cambridge, 2011.
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.
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.
Students will use MS Office applications (Word, Excel, Access, Powerpoint) to work on their weekly assignments about 2 hours a week.
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:
Case Study/Scenarion Analysis
Simulation & Games
Assessment Methods and Criteria:
Test / Exam
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