MIT 14.123

Semester: 

Spring

Offered: 

2017

General equilibrium theory, a framework linking together micro and macroeconomics, and economic science. Covers Walrasian equilibrium (existence and computation, first and second welfare theorems); general implementation (the core, Nash bargaining, strategic market games); the representative consumer and Gorman aggregation; measurement and the organization of data; and calibration and econometric identification. Applications include uncertainty (risk sharing and financial markets); contracts and information economics; village economies and national development; models with money and credit; trade, spatial economics and differentiated commodities. Enrollment limited.