European University Institute Library

Microeconomics, equilibrium and efficiency, Thijs ten Raa

eng

Includes bibliographical references and index

illustrations

index present

non fiction

Microeconomics

841521527

Thijs ten Raa

equilibrium and efficiency

This text teaches you how to apply microeconomic theory in an innovative, intuitive and concise way. Using real-world, empirical examples, this book not only covers the building blocks of the subject, but helps gain a broad understanding of microeconomic theory and models--, Provided by Publisher

pt. I Economic Principles -- ch. 1 Economic building blocks and the importance of elasticities -- 1.1.Introduction -- 1.2.What is an economy? -- 1.3.Building blocks of an economy -- 1.4.Elasticities -- 1.5.Positive and normative economics -- 1.6.Mathematical tools -- 1.7.Summary -- Exercises -- References -- ch. 2 Scarcities and how they are priced -- 2.1.Introduction -- 2.2.The economy -- 2.3.Math review: Maximization of a function -- 2.4.Optimizing the economy -- 2.5.The theory of constrained optimization -- 2.6.Applying Lagrangian theory to the economy -- 2.7.Summary -- Exercises -- Reference -- pt. II The Demand Side of the Economy -- ch. 3 Utility and expenditures -- 3.1.Introduction -- 3.2.Utility functions -- 3.3.Revealed preferences -- 3.4.Demand and expenditure -- 3.5.CES functions -- 3.6.Quantities, prices, and the standard of living -- 3.7.Price indices -- 3.8.Summary -- Exercises -- References --ch. 4 Demand: Income and substitution effects -- 4.1.Introduction -- 4.2.Compensated demand and Shephard's Lemma -- 4.3.Price effects on demand: The Slutsky equation -- 4.4.The Law of Demand for markets -- 4.5.Roy's Lemma -- 4.6.Intertemporal consumption: Savings -- 4.7.Demand for leisure time: Labor supply -- 4.8.Summary -- Exercises -- References -- ch. 5 Measuring consumer well-being -- 5.1.Introduction -- 5.2.Exact measures of price changes -- 5.3.Consumer surplus -- 5.4.Quasi-linear demand -- 5.5.Constant elasticity of substitution (CES) demand -- 5.6.Income changes -- 5.7.Aggregation -- 5.8.Summary -- Exercises -- References -- pt. III The Supply Side of the Economy -- ch. 6 Production analysis: Inputs, outputs, coefficients, and productivity -- 6.1.Introduction -- 6.2.Accounting for inputs and outputs -- 6.3.Productivity, profit, and value-added -- 6.4.National income and national product -- 6.5.Input-output analysis --Contents note continued: 6.6.Total factor productivity -- 6.7.Technical change -- 6.8.Summary -- Exercises -- References -- ch. 7 Production functions -- 7.1.Introduction -- 7.2.Cobb-Douglas and Leontief functions -- 7.3.Derivation of the Cobb-Douglas function -- 7.4.Two-stage production and marginal rates of substitution -- 7.5.Returns to scale -- 7.6.Summary -- Exercises -- Appendix 7.A Derivation of the Cobb-Douglas function -- Appendix 7.B Proof of the Functional Separability Theorem -- References -- ch. 8 Supply and market power -- 8.1.Introduction -- 8.2.Cobb-Douglas supply and demand -- 8.3.The production possibility set -- 8.4.Returns to scale -- 8.5.The Law of Supply -- 8.6.Hotelling's Lemma -- 8.7.Production costs and input demand -- 8.8.Market power -- 8.9.Summary -- Exercises -- Reference -- pt. IV Building the Model of the Economy -- ch. 9 Equilibrium -- 9.1.Introduction -- 9.2.Homogeneity and Walras' Law -- 9.3.Determining equilibrium: The analytical approach --Contents note continued: 9.4.Determining equilibrium: The graphical approach -- 9.5.The road to Negishi's method: The contract curve -- 9.6.Determining equilibrium: Negishi's method -- 9.7.General equilibrium analysis -- 9.8.Equilibrium analysis of production economies -- 9.9.Alternative utility and production functions in the general equilibrium model -- 9.10.Summary -- Exercises -- Appendix 9.A Exchange Economies: Equilibrium Existence -- Appendix 9.B Production Economies: Equilibrium Existence -- References -- ch. 10 Efficiency theory -- 10.1.Introduction -- 10.2.The First Welfare Theorem -- 10.3.The Second Welfare Theorem -- 10.4.Distinguishing between efficiency and inefficiency -- 10.5.How to determine inefficiency -- 10.6.Measuring inefficiency -- 10.7.Inefficiency in small, open economies -- 10.8.Summary -- Exercises -- Reference -- pt. V Putting the Model to Use -- ch. 11 Measuring economic performance -- 11.1.Introduction --Contents note continued: 11.2.Measuring performance by tracking consumption -- 11.3.Analyzing dynamic efficiency -- 11.4.Analyzing static efficiency -- 11.5.Consumer surplus and market power -- 11.6.Summary -- Exercises -- References -- ch. 12 Market forms and competition policy -- 12.1.Introduction -- 12.2.Sustainable and supportable prices -- 12.3.Ramsey prices -- 12.4.The Weak Invisible Hand Theorem -- 12.5.Limit prices -- 12.6.Measuring efficiency -- 12.7.Measuring the efficiency of an industrial organization -- 12.8.Efficiency and prices -- 12.9.Summary -- Exercises -- References -- ch. 13 Public economics -- 13.1.Introduction -- 13.2.Public goods -- 13.3.Lindahl prices -- 13.4.Ramsey taxes -- 13.5.Club goods -- 13.6.Externalities -- 13.7.Environmental economics -- 13.8.Measuring inequality -- 13.9.Summary -- Exercises -- References -- pt. VI Market Imperfections -- ch. 14 Game theory and the new industrial organization -- 14.1.Introduction --Contents note continued: 14.2.Games and strategies: Best responses -- 14.3.Price games -- 14.4.Quantity games -- 14.5.The new industrial organization -- 14.6.Bimatrix games -- 14.7.Randomized strategies -- 14.8.Nash equilibrium analysis -- 14.9.Constant-sum games -- 14.10.Summary -- Exercises -- References -- ch. 15 Analyzing uncertainty and missing information -- 15.1.Introduction -- 15.2.Modeling uncertainty -- 15.3.Expected utility theory -- 15.4.Risk analysis -- 15.5.Contingencies analysis -- 15.6.Insurance -- 15.7.Fixed wages vs. bonuses -- 15.8.Summary -- Exercises -- References -- ch. 16 Search, transaction, and switching costs -- 16.1.Introduction -- 16.2.Searching: Analyzing costs vs. benefits -- 16.3.Transaction costs -- 16.4.Switching costs -- 16.5.Summary -- Exercises -- Appendix 16.A Differentiating the integral in the expected utility expression with respect to the number of searches -- References

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