General Equilibrium Theory - M2 MMMEF and M2 APE
Résumé de section
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Teachers: Jean Marc Bonnisseau & Elena del Mercato
Class: Friday, from 9:00 to 12:00, Room R1-09 (it means first floor, room “09”) - PSE Campus Jourdan, 48 Boulevard Jourdan, 75014 Paris
E-mails: Jean-Marc.Bonnisseau@univ-paris1.fr , Elena.delMercato@univ-paris1.frRemark that the session scheduled on Friday, October 16, 2020 from 9:00 to 12:00 will take place at PSE Campus Jourdan, 48 Boulevard Jourdan, in Room R1-14 (it means first floor, room “14”).
Course in English - First Semester 2020/2021
General Presentation
The general equilibrium theory studies the interactions among heterogeneous agents on commodity and financial markets. The course begins with an outline of the main properties of a competitive equilibrium in the classical Arrow-Debreu model (existence, efficiency, local uniqueness). The course then focuses on advanced questions arising from market imperfections and financial markets, such as externalities, increasing returns to scale and incomplete financial markets.
Key words: equilibrium, competition, market imperfections: externalities, financial markets.
Class: Every Friday, 9:00 - 12:00, from September 18 to December 11, 2020 - Room R1-09 - PSE Campus Jourdan, 48 Boulevard Jourdan, 75014 ParisThe course consists of two parties: "General equilibrium and Externalities" and "General equilibrium and Financial Markets", see below.
"General equilibrium and Externalities"
Duration: 18 heures – 6 weeks from Friday, September 18 to Friday, October 23, 2020
Mode of evaluation: attendance & presentation of selected research articles and/or written exam
Content:
- An overview of general equilibrium theory; main results
- Competitive equilibrium with externalities; basic results
- Externalities and market failure; perfect internalization, Pareto improving policies
- Externalities in production economies
- Increasing returns to scale; optimality, marginal pricing rule.
"General equilibrium and Financial Markets"
Duration: 18 heures – 6 weeks from Friday, November 6 to Friday, December 11, 2020
Mode of evaluation: attendance & presentation of selected research articles and/or written exam
Content:
- The two period economy with uncertainty; risk aversion
- Arrow securities, financial markets ; real, nominal and numeraire assets
- Absence of arbitrage opportunities, existence of present value vector, uniqueness, risk neutral probability
- Completeness of the financial structure
- Existence of a financial equilibrium for nominal and numeraire asset; generic existence for real assets
- Behaviour of the firms and incomplete markets -
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