Title:
Introduction to General Equilibrium in Economics
Stream:
Preamble: The objective of the course is to give an introductory exposure to the student on Walrasian and Non-Walrasian equilibria in economics. The two welfare theorems of economics are going to be covered. The general exchange and production models will be covered in simple forms. In most of the topics, specific well-behaved utility function and production function will be considered in describing the models. This course will allow the students to understand the micro-foundations of an economy
Course Content:
Exchange Economy: Edgeworth Box, Excess demand function, Existence and stability of equilibrium; Production: Linear activity model of production; Competitive Equilibrium (Walrasian equilibrium): Existence, Uniqueness, Stability; Welfare Economics: Fundamental Theorems of Welfare Economics; Non-Walrasian Equilibria: Younes equilibria, Dreze Equilibria; Unemployment Equilibria.
Texts:
Ross M. Starr, General Equilibrium Theory: An Introduction, Second Edition, Cambridge
University Press, 2011.
References:
Anjan Mukherji, An Introduction to General Equilibrium Analysis: Walrasian and Non-
Walrasian Equilibria, Oxford University Press, 2002.
Hal R Varian, Microeconomic Analysis, 3rd edition , W W Norton & Company, 2019
