《北大微观经济学课件(英文版)Ch29Exchange》教学课件.ppt

* 中级微观经济学 Second Fundamental Theorem OA OB Implemented by competitive trading from the endowment w. * 中级微观经济学 Second Fundamental Theorem OA OB Can this allocation be implementedby competitive trading from w? * 中级微观经济学 Second Fundamental Theorem OA OB Can this allocation be implementedby competitive trading from w? No. * 中级微观经济学 Second Fundamental Theorem OA OB But this allocation is implementedby competitive trading from q. * 中级微观经济学 Walras’ Law Walras’ Law is an identity; i.e. a statement that is true for any positive prices (p1,p2), whether these are equilibrium prices or not. * 中级微观经济学 Walras’ Law Every consumer’s preferences are well-behaved so, for any positive prices (p1,p2), each consumer spends all of his budget. For consumer A:For consumer B: * 中级微观经济学 Walras’ Law Summing gives * 中级微观经济学 Walras’ Law Rearranged, That is, ... * 中级微观经济学 Walras’ Law This says that the summed marketvalue of excess demands is zero for any positive prices p1 and p2 -- this is Walras’ Law. * 中级微观经济学 Implications of Walras’ Law Suppose the market for commodity A is in equilibrium; that is, Then implies * 中级微观经济学 Implications of Walras’ Law So one implication of Walras’ Law for a two-commodity exchange economy is that if one market is in equilibrium then the other market must also be in equilibrium. * 中级微观经济学 Implications of Walras’ Law What if, for some positive prices p1 and p2, there is an excess quantity supplied of commodity 1? That is, Then implies * 中级微观经济学 Implications of Walras’ Law So a second implication of Walras’ Law for a two-commodity exchange economy is that an excess supply in one market implies an excess demand in the other market. 谢谢！ * 中级微观经济学 Trade in Competitive Markets So given p1 and p2, consumer A’s net demands for commodities 1 and 2 are and * 中级微观经济学 Trade in Competitive Markets And, similarly, for consumer B … * 中级微观经济学 Trade in Competitive Markets For consumer B. OB * 中级微观经济学 Trade in Competitive Markets So given p1 and p2, consumer B’s net dema