Planeamento

Aulas

Introduction

Information about the course

Consumer theory: the preference relation

Demand theory

Utility

Consumer choice: Marshallian demand

Indirect utility and expenditure

The indirect utility function: properties and Roy's identity

Expenditure function and Hicksian demand

Selected exercises

Selected exercises (chp. 1 J&R)

The Slutsky equation

Income and substitution effects

Hicksian vs. Marshallian demand curves

The Slutsky equation

Important elasticities (next class)

Decision making with risk

Elasticities in consumer theory

Preferences under uncertainty and risk

Von Neumann - Morgenstern utility

Risk aversion

Definition and measures of risk aversion

Exercises

Selected exercises on consumer theory

(J&R, chp. 1 and 2)

Production function

Properties of the production function

Elasticity of substitution

Returns to scale

Cost

The cost function

Conditional input demands

Short vs. long-run costs

The competitive firm

Profit maximization

Output supply and input demand

Exercises on the theory of the firm

Selected exercises on the theory of the firm

(J&R, chp.3)

Perfect Competition

Short and long-run equilibrium in a competitive market

Monopoly

Market equilibrium under monopoly

Monopolistic competition

Welfare analysis

Welfare measures

Pareto efficiency and surplus maximization

Partial equilibrium overview

Selected exercises on competitive markets and monopoly

(J&R, chp.4)

Introduction to General Equilibrium

Exchange equilibrium

Edgeworth box and contract curve

General equilibrium in markets

Excess demands and Walrasian equilibrium

The two Fundamental Theorems of Welfare Economics

Equilibrium with production

Supply and profits

Link to consumers through profit shares

Welfare analysis

The Fundamental Theorems revisited

Selected exercises (J&R chp.5)

An introduction to market failures and behavioural economics