Content

The focus of this course is on the modern theory of general equilibrium and information economics. The course is divided into two parts. The first part begins by presenting the microeconomic foundations of general equilibrium theory as introduced in Debreu ("Theory of Value", 1959) and Hildenbrand/Kirman ("Equilibrium Analysis",1988). This is followed by an extension to so-called dynamic general equilibrium models possessing an explicit time structure with a particular focus on the class of overlapping generations economies. The latter play an important role in modern macroeconomic theory. The second part of the course deals with asymmetric information and introduces the basic models based on Akerlof's "Market for Lemons“. The course is largely based on the textbook "Microeconomic Theory" (Chapters 1-5, 10, 13-20) by A.Mas-Colell, M.D.Whinston, and J.R.Green.