SES # | TOPICS | KEY DATES |
---|---|---|

Part 1: Demand theory | ||

L1 | Utility theory, properties of preferences, choice as primitive, revealed preference, and Afriat's theorem | Problem set 1 out |

L2 | Classical demand theory, Kuhn-Tucker necessary conditions, implications of Walras's law, indirect utility functions, theorem of the maximum (Berge's theorem), expenditure minimization problem, Hicksian demands, compensated law of demand, and Slutsky substitution | Problem set 2 out |

L3 | Price changes and welfare, compensating variation, and welfare from new goods | Problem set 1 due |

L4 | Price indexes, bias in the U.S. consumer price index, integrability, demand aggregation, aggregate demand and welfare, Frisch demands, and demand estimation | Problem set 3 out |

Part 2: Producer theory | ||

L5 | Producer theory, robust comparative statics, increasing differences, producer theory applications, the LeChatelier principle, Topkis' theorem, and Milgrom-Shannon monotonicity theorem | Problem set 2 due |

L6 | Monopoly pricing, monopoly and product quality, nonlinear pricing, and price discrimination | |

Part 3: Partial equilibrium competitive markets | ||

L7 | Externalities, simple models of externalities, government intervention, Coase theorem, Myerson-Sattherthwaite proposition, missing markets, price vs. quantity regulations, Weitzman's analysis, uncertainty, common property externalities, optimization, and equilibrium number of boats | Problem set 3 due and problem set 4 out |

Part 4: General equilibrium | ||

L8 | General equilibrium in context, existence, welfare theorems, uniqueness and determinacy, price-taking assumption, Edgeworth box, welfare properties, Pareto efficiency, and Walrasian equilibrium with transfers | Problem set 5 out |

L9 | Arrow-Debreu economy, welfare theorems, separating hyperplanes, and Minkowski's theorem | Problem set 4 due |

L10 | Existence of Walrasian equilibrium, Kakutani's fixed point theorem, Debreu-Gale-Kuhn-Nikaido lemma, and additional properties of general equilibrium | Problem set 6 out |

L11 | Microfoundations, core, and core convergence | Problem set 5 due and problem set 7 out |

L12 | General equilibrium with time and uncertainty, Jensen's inequality, and security market economy, arbitrage pricing theory, and risk-neutral probabilities | |

L13 | Housing markets, competitive equilibrium, one-sided matching house allocation problem, serial dictatorship, two-sided matching, marriage markets, existence of stable matchings, optimization, incentives, and housing markets core mechanism | Problem set 6 due in Ses #L13 and final exam taken 2 days after Ses #L13 |