This information is indicative and can be subject to change.
General equilibrium theory 1 and 2 (5 ECTS)
Teachers: Elena del MERCATO et Jean Marc BONNISSEAU
E-mail: [email protected], [email protected]
ECTS: 5 ECTS
Evaluation: Attendance, homeworks, presentation of a selected research article and final written exam.
Previsional Place and time: Room R1-09 - PSE Campus Jourdan, 48 Boulevard Jourdan, 75014 Paris - First Semester, each Friday from 9:00 to 12:00.
EPI of the course: https://cours.univ-paris1.fr/course/view.php?id=28586
Prerequisites:
Aim of the course: The general equilibrium theory studies the interactions among heterogeneous agents on commodity and financial markets. The course begins with an outline of the main properties of a competitive equilibrium in the classical Arrow-Debreu model (existence, efficiency, local uniqueness). The course then focuses on advanced questions arising from market imperfections and it consists of two parts:
Part 1 “General equilibrium and Externalities” (E. del Mercato)
Duration: 18 hours, the first 6 weeks.
Duration: 18 hours, the next 6 weeks.
General equilibrium theory 1 and 2 (5 ECTS)
Teachers: Elena del MERCATO et Jean Marc BONNISSEAU
E-mail: [email protected], [email protected]
ECTS: 5 ECTS
Evaluation: Attendance, homeworks, presentation of a selected research article and final written exam.
Previsional Place and time: Room R1-09 - PSE Campus Jourdan, 48 Boulevard Jourdan, 75014 Paris - First Semester, each Friday from 9:00 to 12:00.
EPI of the course: https://cours.univ-paris1.fr/course/view.php?id=28586
Prerequisites:
Aim of the course: The general equilibrium theory studies the interactions among heterogeneous agents on commodity and financial markets. The course begins with an outline of the main properties of a competitive equilibrium in the classical Arrow-Debreu model (existence, efficiency, local uniqueness). The course then focuses on advanced questions arising from market imperfections and it consists of two parts:
- “General equilibrium and Externalities (E. del Mercato)”, and
- “General equilibrium and Financial Markets (J.-M. Bonnisseau)”
Part 1 “General equilibrium and Externalities” (E. del Mercato)
Duration: 18 hours, the first 6 weeks.
- An overview of general equilibrium theory: main results.
- Competitive equilibrium with externalities: basic results.
- Externalities and market failure: perfect internalization; Pareto improving policies.
- Externalities in production economies; marginal pricing rule.
Duration: 18 hours, the next 6 weeks.
- The two period economy with uncertainty; risk aversion.
- Arrow securities, financial markets ; real, nominal and numeraire assets.
- Absence of arbitrage opportunities, existence of present value vector, uniqueness, risk neutral probability.
- Completeness of the financial structure.
- Existence of a financial equilibrium for nominal and numeraire assets; generic existence for real assets.
- Behavior of the firms and incomplete markets.
Exams 2020 and 2021:
|
| ||||
References:
* Arrow, K.J., Hahn, F., General competitive analysis. Holden-Day, San Francisco (1971)
* Balasko Y., Foundations of the Theory of General Equilibrium. Academic Press (1988)
* Balasko, Y., Economies with price-dependent preferences. Journal of Economic Theory 109, 333-359, (2003)
* Balasko, Y., Wealth concerns and equilibrium. Journal of Mathematical Economics, Elsevier, vol. 59(C), 92-101 (2015)
* Bonnisseau, J.M., and Cornet, B., Existence of equilibria when firms follow bounded losses pricing rules. Journal of Mathematical Economics, 17 (1988), 119-147
* Bonnisseau, J.-M., del Mercato, E.L., Externalities, consumption constraints and regular economies. Economic Theory 44, 123–147 (2010)
* Bonnisseau, J.-M., del Mercato, E.L., Siconolfi, P., Existence of an equilibrium in Arrowian markets for consumption externalities”, CES Working Paper, 2022.07, pp. 1-16.
* Coase, R., The Problem of Social Cost. Journal of Law and Economics, vol. 3, 1-44 (1960)
* Conley, J.P., Smith, S., Coasian Equilibrium. Journal of Mathematical Economics, Vol. 41, 687-704 (2005)
* Cornet B., General equilibrium theory and increasing returns: presentation. Journal of Mathematical Economics, 17, 103-118 (1988)
* Cornet B., Tarification au coût marginal et Pareto optimalité, Mélanges économiques. Essais en l'honneur d’Edmond Malinvaud, P. Champsaur et al (eds.), Economica, Paris (1988), 29-70. Translated as: Marginal Cost Pricing and Pareto Optimality, Essays in Honor of Edmond Malinvaud, P. Champsaur et al (eds.), The M.I.T. Press, Cambridge (1990)
* Debreu G., Theory of value. Cowles Foundation Monographs Series (1959)
* Dufwenberg, M., Heidhues, P., Kirchsteiger, G., Riedel, F., and Sobel, J., Other-regarding preferences in general equilibrium. Review of Economic Studies, 78(2), 613-639 (2011)
* del Mercato, E.L., Existence of competitive equilibria with externalities: A differential viewpoint. Journal of Mathematical Economics 42, 525–543 (2006)
* del Mercato, E.L., Platino, V., Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach. Journal of Economics 121(1), 75-98 (2017)
* del Mercato, E.L., Platino, V., On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash. Economic Theory 63(1), 287-307 (2017)
* del Mercato, E.L., Nguyen, V.-Q., Sufficient conditions for a “simple” decentralization with consumption externalities , CES Working Paper 2021.29R, 2021, pp. 1-30
* Florenzano M., General Equilibrium Analysis: Existence and Optimality Properties of Equilibria. Springer (2005)
* Geanakoplos, J.D., Polemarchakis, H.M., Existence, regularity and constrained suboptimality of competitive allocations when the asset market is incomplete. In: Starrett, D., Heller, W.P., Starr, R.M. (eds.) Uncertainty, Information and Communication: Essays in Honor of K. J. Arrow, vol. III, pp. 65–96. Cambridge University Press, Cambridge (1986)
* Geanakoplos, J.D., Polemarchakis, H.M., Pareto improving taxes. Journal of Mathematical Economics 44, 682–696 (2008)
* Geanakoplos, J.D., Magill, M., Quinzii, M., Drèze, J., Generic inefficiency of stock market equilibrium when markets are incomplete. Journal of Mathematical Economics 19, 113–151 (1990)
* Laffont, J.-J., Decentralization with externalities. European Economic Review 7, 359–375 (1976)
* Laffont, J.-J., Fundamentals of Public Economics. John and Helene Brown, translators, MIT Press, Cambridge (1988)
* McKenzie, L.W., Competitive equilibrium with dependent consumer preferences. In: Proceedings of the Second symposium of linear programming, Washington, DC, 277–294 (1955)
* Mas-Colell, A., The Theory of General Economic Equilibrium, a Differentiable Approach, Econometric Society Monograph (1990)
* Mas-Colell, A., Whinston, M.D., and Green, J.R., Microeconomic Theory. Oxford University Press (1995)
* Magill, M., and Quinzii, M., Theory of Incomplete Markets. MIT press (2002)
* Shafer, W., Sonnenschein, H., Some theorems on the existence of competitive equilibrium. Journal of Economic Theory, vol. 11(1), pages 83-93 (1975)
* Shafer, W., Sonnenschein, H., Equilibrium with Externalities, Commodity Taxation, and Lump Sum Transfers. International Economic Review, 17(3), 601-11 (1976)
* Smale, S., Global analysis and economics. In: Arrow, K., Intriligator, M. (eds.) Handbook of Mathematical Economics, vol. I, Chap. 8, pp. 331–370. Amsterdam: North-Holland (1981)
* Tallon, J.M., Equilibre général : Une introduction. Vuibert (1997)
* Villanacci, A., Carosi, L., Benevieri, P., Battinelli, A., Differential Topology and General Equilibrium with Complete and Incomplete Markets. Kluwer Academic Publishers (2002)
* Arrow, K.J., Hahn, F., General competitive analysis. Holden-Day, San Francisco (1971)
* Balasko Y., Foundations of the Theory of General Equilibrium. Academic Press (1988)
* Balasko, Y., Economies with price-dependent preferences. Journal of Economic Theory 109, 333-359, (2003)
* Balasko, Y., Wealth concerns and equilibrium. Journal of Mathematical Economics, Elsevier, vol. 59(C), 92-101 (2015)
* Bonnisseau, J.M., and Cornet, B., Existence of equilibria when firms follow bounded losses pricing rules. Journal of Mathematical Economics, 17 (1988), 119-147
* Bonnisseau, J.-M., del Mercato, E.L., Externalities, consumption constraints and regular economies. Economic Theory 44, 123–147 (2010)
* Bonnisseau, J.-M., del Mercato, E.L., Siconolfi, P., Existence of an equilibrium in Arrowian markets for consumption externalities”, CES Working Paper, 2022.07, pp. 1-16.
* Coase, R., The Problem of Social Cost. Journal of Law and Economics, vol. 3, 1-44 (1960)
* Conley, J.P., Smith, S., Coasian Equilibrium. Journal of Mathematical Economics, Vol. 41, 687-704 (2005)
* Cornet B., General equilibrium theory and increasing returns: presentation. Journal of Mathematical Economics, 17, 103-118 (1988)
* Cornet B., Tarification au coût marginal et Pareto optimalité, Mélanges économiques. Essais en l'honneur d’Edmond Malinvaud, P. Champsaur et al (eds.), Economica, Paris (1988), 29-70. Translated as: Marginal Cost Pricing and Pareto Optimality, Essays in Honor of Edmond Malinvaud, P. Champsaur et al (eds.), The M.I.T. Press, Cambridge (1990)
* Debreu G., Theory of value. Cowles Foundation Monographs Series (1959)
* Dufwenberg, M., Heidhues, P., Kirchsteiger, G., Riedel, F., and Sobel, J., Other-regarding preferences in general equilibrium. Review of Economic Studies, 78(2), 613-639 (2011)
* del Mercato, E.L., Existence of competitive equilibria with externalities: A differential viewpoint. Journal of Mathematical Economics 42, 525–543 (2006)
* del Mercato, E.L., Platino, V., Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach. Journal of Economics 121(1), 75-98 (2017)
* del Mercato, E.L., Platino, V., On the regularity of smooth production economies with externalities: Competitive equilibrium à la Nash. Economic Theory 63(1), 287-307 (2017)
* del Mercato, E.L., Nguyen, V.-Q., Sufficient conditions for a “simple” decentralization with consumption externalities , CES Working Paper 2021.29R, 2021, pp. 1-30
* Florenzano M., General Equilibrium Analysis: Existence and Optimality Properties of Equilibria. Springer (2005)
* Geanakoplos, J.D., Polemarchakis, H.M., Existence, regularity and constrained suboptimality of competitive allocations when the asset market is incomplete. In: Starrett, D., Heller, W.P., Starr, R.M. (eds.) Uncertainty, Information and Communication: Essays in Honor of K. J. Arrow, vol. III, pp. 65–96. Cambridge University Press, Cambridge (1986)
* Geanakoplos, J.D., Polemarchakis, H.M., Pareto improving taxes. Journal of Mathematical Economics 44, 682–696 (2008)
* Geanakoplos, J.D., Magill, M., Quinzii, M., Drèze, J., Generic inefficiency of stock market equilibrium when markets are incomplete. Journal of Mathematical Economics 19, 113–151 (1990)
* Laffont, J.-J., Decentralization with externalities. European Economic Review 7, 359–375 (1976)
* Laffont, J.-J., Fundamentals of Public Economics. John and Helene Brown, translators, MIT Press, Cambridge (1988)
* McKenzie, L.W., Competitive equilibrium with dependent consumer preferences. In: Proceedings of the Second symposium of linear programming, Washington, DC, 277–294 (1955)
* Mas-Colell, A., The Theory of General Economic Equilibrium, a Differentiable Approach, Econometric Society Monograph (1990)
* Mas-Colell, A., Whinston, M.D., and Green, J.R., Microeconomic Theory. Oxford University Press (1995)
* Magill, M., and Quinzii, M., Theory of Incomplete Markets. MIT press (2002)
* Shafer, W., Sonnenschein, H., Some theorems on the existence of competitive equilibrium. Journal of Economic Theory, vol. 11(1), pages 83-93 (1975)
* Shafer, W., Sonnenschein, H., Equilibrium with Externalities, Commodity Taxation, and Lump Sum Transfers. International Economic Review, 17(3), 601-11 (1976)
* Smale, S., Global analysis and economics. In: Arrow, K., Intriligator, M. (eds.) Handbook of Mathematical Economics, vol. I, Chap. 8, pp. 331–370. Amsterdam: North-Holland (1981)
* Tallon, J.M., Equilibre général : Une introduction. Vuibert (1997)
* Villanacci, A., Carosi, L., Benevieri, P., Battinelli, A., Differential Topology and General Equilibrium with Complete and Incomplete Markets. Kluwer Academic Publishers (2002)
