## Class Time and Location

The class meets on Tuesday and Thursday from 2:00pm to 3:15pm in the seminar room, DM-323.

## Course Description

This is the second course of the graduate microeconomics sequence. It focuses on competitive markets and general equilibrium. This includes not just the traditional static model, but also general equilibrium over time and with financial markets, focusing on the construction of consistent general equilibrium models, and the characterization of their solutions. The course also examines welfare analysis, both within general equilibrium models, and through the development of empirical measures of economic welfare.

## Textbook

- Required: My micro theory manuscript, which will be emailed to everyone signed up for the class.
- Recommended: Andreu Mas-Colell, Michael Whinston, and Jerry Green,
*Microeconomic Theory*, Oxford University Press, New York, 1995, aka MWG.

Many of the topics in the manuscript are also covered in MWG. The course outline shows the relevant chapter correspondences between MWG and my manuscript.

## Slides

Slides will be made available after we cover the relevant material. FYI. For those who read ahead, read my manuscript. The slides are edited selections from it.

- Chapter 3.
- Chapter 7.
- Chapter 9.
- Chapter 10.
- Chapter 6.
- Chapter 13.
- Chapter 14.
- Chapter 15.
- Chapter 16.
- Chapter 19.
- Chapter 20.
- Chapter 21.
- Chapter 22.
- Chapter 23.
- Chapter 25.
- Chapter 27.
- Chapter 28.

## Office Hours and Contact Info

If you have questions, you may ask immediately after class, or come
to my office.
Regular office hours are 12:45-1:45pm and 3:30-4:45pm on Tuesdays and Thursdays.
I will be happy to make an appointment for another time if that
is more convenient. My office is **DM-311A**,
my phone number is **305-348-3287**,
and my email is <boydj@fiu.edu>
or <John.Boyd@fiu.edu>.

## Exams and Homework

The take-home midterm will be worth 35% of your grade. The final is worth 50% of your grade.

The **mid-term** was on Tuesday, March 7. See answers below with
the old midterms.

The **final** is officially scheduled for
**12 noon, Thursday, April 27**. Like the mid-term, it will be a
take-home final that I will make available by noon on April 27. You will have
until midnight to complete it.

### Sample Exams

The material covered varies from year to year and some of the questions on previous exams may not be relevant for the material we cover this year. A few of the answers contain minor errors.

### Homework

Homework assignments will count for the remaining 15% of your grade. Homework assignments will appear here as they are made.

### Homework Assignments

Homework assignments and answers will appear below. Please email me your homework answers by the due date. I strongly prefer you send me a single PDF containing all the answers for the problem set.

- Problems 3.1.6, 3.2.2, 3.3.6, 3.4.4, and 3.4.5 from my manuscript were due on Tuesday, February 7. Click here for the answers.
- Problems 7.4.1, 9.1.5, 9.1.8, 9.2.2, and 9.4.2 from my manuscript were due on Tuesday, February 14. Click here for the answers.
- Problems 10.3.2, 6.1.2, 6.2.2, 13.4.2, and 13.5.2 were due on Thursday, February 23. Click here for the answers.
- Problems 15.3.2, 15.4.4, 19.2.2, 19.2.6 and 19.3.1 were due on Tuesday, March 28. Click here for the answers.
- Problems 20.4.2, 20.4.5, 21.2.1, 21.2.6, and 22.4.2 were due on Thursday, April 6. Click here for the answers.
- Problems 22.4.3, 22.6.3, 22.6.4, 23.1.4, and 23.3.4 were due on Thursday, April 13. Click here for the answers.
- Problems 25.2.6, 25.2.7, 25.5.2, 27.2.2, and 27.3.2 were due on Thursday, April 20. Click here for the answers.

## Course Outline

You are responsible for the material covered in any sections of the manuscript mentioned in the outline.

I strongly recommend that you make sure you are familiar with the material in the non-starred sections of chapters 1-2 and 4-6 of the manuscript. Much of this should be familiar from Fundamentals Micro, and a bit of it appeared in Math Methods.

The table lists the closest corresponding chapter in Mas-Colell, Whinston, and Green (MWG). In some cases, the correspondence is not very close. We will not cover all of the material in the manuscript. I will occasionally update the list to reflect material actually covered.

Week | Dates | Manuscript Chapter | Subject | MWG Chapter |
---|---|---|---|---|

1 | Jan. 10, 12 | 3 | Homotheticity and Separability | N/A |

2 | Jan. 17, 19 | 3 | No Class -- Illness | N/A |

3 | Jan. 24 | 3 | Homotheticity and Separability | N/A |

3-4 | Jan. 26, 31 | 7 | Convex Analysis | N/A |

4 | Feb. 2, 7 | 9-10 | Theory and Measurement | N/A |

4 | Feb. 9 | 6 | Production of a Single Good | 5 |

5 | Feb. 14 | 13 | Production Sets and Profit | 5 |

5 | Feb. 16, 21 | 14 | Firm and Market Supply | 5 |

6 | Feb. 21, 23 | 15 | Competitive Equilibrium | 15 |

7 | Feb. 23 | 16 | Equilibrium Existence I | 17A-C |

- | Feb. 27-Mar. 3 | -- | No Class! Spring Break | |

8 | Mar. 7 | Midterm | Midterm (thru Chap. 14) | |

8 | Mar. 9 | 16 | Equilibrium Existence II | 17A-C |

9 | Mar. 14 | 19 | Pareto Optimality I | 16 |

9 | Mar. 16 | 20 | Economic Welfare | 16 |

10 | Mar. 21, 23 | 21 | The Edgeworth Conjecture | 18 |

10 | Mar. 28, 30 | 22 | Preferences and Risk | 6 |

11 | Mar. 30, Apr. 4 | 23 | Attitudes toward Risk | 6 |

12 | Apr. 4, 6 | 25 | Equilibrium over Time | 20 |

13 | Apr. 11, 13 | 27 | Equilibrium in Complete Asset Markets | 19 |

14 | Apr. 18, 20 | 28 | Radner Equilibrium | 19 |

15 | Apr. 27 | Final | Takehome Exam |