伦敦经济学院高微讲义-一般均衡.pptVIP

General Equilibrium: a many-person economy Overview... Why is Robinson Crusoe so boring? Onward from Crusoe... Three major components What is an economy? A many-person economy The state of an economy is described by an allocation... ..and a competitive allocation is... How does a competitive allocation work? A many-person economy Where did R.Crusoes income come from...? So what does household h possess? Incomes And so profits depend on prices... ...so incomes depend on prices ...which implies: Written more simply... Competitive system takes as given... ...determines an allocation a summary of the process A many-person economy What kind of allocation is an equilibrium? The basics of competitive equilibrium Aggregate consumption of good i...?? Aggregate net output To make life simple: Competitive equilibrium: a summary An example A description of Alf... ...Bill Alfs budget constraint Bills optimisation problem The equilibrium of Alf The equilibrium of Bill Flipped... Flipped... The size of the Edgeworth Box competition takes Alf Bill from here... ...to here. The role of prices is central... Alf and Bill as a microcosm. x1a R1a R2a x2a Oa Alfs optimisation problem Increasing preference endowment point Bills budget constraint x1b R1b R2b x2b Ob Increasing preference endowment point D x2a Oa x1a E equilibrium endowment x1b R1b R2b x2b Ob E equilibrium endowment D x1b R1b R2b x2b Ob E D R1b R2b Ob x2b x1b E D ...to give the Edgeworth Box D E x2b Ob x1b x2a Oa x1a R1a+R1b R2a+R2b D E x 1 a x 2 a x 2 b x 1 b O b O a endowment E D x 1 a x 2 a x 2 b x 1 b O b O a equilibrium E D x 1 a x 2 a x 2 b x 1 b O b O a Incomes in the distribution match expenditures in the allocation * Microeconomics Excess Demand Decentralis-ation and Trade A many-person economy Robinson Crusoes Problem Excess Demand Decentralis-ation and Trade Robinson Crusoes Problem General Equilibrium Why price-taking? Why price-taking? Theres only one economic actor Therefore th