General Equilibrium and Welfare

Third year module

The module examines the working of the market mechanism, in teams of both ideal outcomes and market failure. Included are: Arrow‟s impossibility theorem and social decisions, the first and second fundamental theorems of welfare economics; existence of general equilibrium; production in general equilibrium; the core.

Learning outcomes

On completion of this module the student will be able to: demonstrate a basic knowledge of the areas examined; formalise concepts and derive the relevant theorems; by using the theory, solve, mathematically, problems to do with general equilibrium and social welfare/social choice theory.

Assessment

2hr written examination 60%, 2 problem solving exercises 20%, class test 20%