高级微观经济学Exchange推荐.ppt

Lecture 12: Exchange General Equilibrium theory I Content Pure exchange system The existence of Walrasian equilibrium The first theorem of welfare economics The second theorem of welfare economics Exchange with production. Pure exchange system An allocation A= (x1,…xI) is feasible if is the endowments of commodity l Edgeworth box: 2×2 Pure exchange system Walrasian equilibrium: An allocation and price are a Walrasian equilibrium, if: Utility maximization Feasible see the fig. The existence of Walrasian equilibrium Given an endowment w, is there any walrasian equilibria? Assumption1:The demand function is HD0 of price. The aggregated extra-demands Assumption2: Walras’ law: The existence of Walrasian equilibrium Assumption3: market clearing Desirability: lemma1: free goods: if p* is a walrasian equilibrium price, and ,then lemma2: Equivalent of demand and supply: all the commodities are desirable and p* is a walrasian equilibrium price, then The existence of Walrasian equilibrium Brouwer’s fixed-point theorem: continuous function , ( is a unit simplex) and there exist an x, that: Scarf,1973. when n=1;let g(x)=f(x)-x, The existence of Walrasian equilibrium If is a continuous function witch satisfied Walras’ law, , then there exist some in such that . Construct a unit simplex: Defined The existence of Walrasian equilibrium By brouwer’s fixed-point theorem, there is a p* , such that So The existence of Walrasian equilibrium And Sum up with i So, we have: Example: C-D economy The first theorem of welfare economics Pareto efficient allocations: The solution is Pareto sets and also called contract curve. See the fig. The first theorem of welfare economics If is a Walrasian equilibrium, then x is Pareto efficient. The second theorem