Lecture 5: Welfare Analysis and Efficiency
Topics
- Exchange economies and the Edgeworth box
- First and second welfare theorems
- Social welfare functions and the social planner’s problem
- Adding production to the model of exchange economies
Textbook references: Chapter 16 from Pyndyck and Rubinfeld uploaded under “Additional Content.”
Slides
The slides are available online as an HTML file. Use the buttons below to open the slides either as an interactive website or as a static PDF (for printing or storing for later). You can also click in the slides below and navigate through them with your left and right arrow keys.