The Resource General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)
General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)
Resource Information
The item General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book) represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in University of Liverpool.This item is available to borrow from 1 library branch.
Resource Information
The item General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book) represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in University of Liverpool.
This item is available to borrow from 1 library branch.
 Summary
 This book addresses the gaps in undergraduate teaching of partial equilibrium analysis, providing a general equilibrium viewpoint to illustrate the assumptions underlying partial equilibrium welfare analysis. It remains unexplained, at least at the level of general economics teaching, in what sense partial equilibrium analysis is indeed a part of general equilibrium analysis. Partial equilibrium welfare analysis isolates a market for a single commodity from the rest of the economy, presuming that other things remain equal, and measures gains and losses by means of consumer surplus. This is a money metric that is supposed to be summable across individuals, recommending policy that maximizes the social surplus. But what justifies such apparently unidimensional practise? Within a general equilibrium framework, the assumption of no income effect is presented as the key condition, and substantive general equilibrium situations in which the condition emerges are presented. The analysis is extended to the case of uncertainty, in which the practice adopts aggregate expected consumer surplus, and scrutinizes when such practice is justified. Finally, the book illustrates partial equilibrium as an institutional artifact, meaning that institutional constraint induces individuals to behave as if they are in partial equilibrium. This volume forms an important contribution to the literature by researching why this disparity persists and the implications for economics education.
 Language
 eng
 Extent
 1 online resource.
 Contents

 Preface; Acknowledgements; Contents; List of Figures; 1 Introduction; 1.1 Introduction; 1.2 The Econ 101 Presentation; 1.3 It Can Be Restored, but at Some (Maybe Huge?) Cost; 1.4 Apparent Determinateness; 1.5 Partial Equilibrium as an Institutional Artifact; 2 General Equilibrium Theory; 2.1 Preference and Utility Function; 2.2 Demand and Compensated Demand; 2.2.1 Demand Function and Indirect Utility Function; 2.2.2 Compensated Demand Function, Expenditure Function, and Income Compensation Function; 2.3 Comparative Statics; 2.4 General Equilibrium in Exchange Economies
 2.4.1 Setting and Definitions2.4.2 Efficiency; 2.4.3 Differential Characterization; 2.5 The Compensation Principle; 2.6 Social Welfare Function; 2.6.1 Arrovian Social Welfare Function; 2.6.2 BergsonSamuelson Social Welfare Function; 2.6.3 Negishi Approach; 2.7 General Equilibrium Under Uncertainty; 2.7.1 The Environment; 2.7.2 ArrowDebreu Market; 2.7.3 Sequential Trade; 2.7.4 Market Incompleteness and Efficiency; Notes; References; 3 Income Evaluation of Welfare Change: Equivalent Variation, Compensating Variation, and Consumer Surplus; 3.1 Definitions; 3.1.1 SingleGood Price Change
 3.2 Recovery of Welfare Measure from Marshallian Demand3.3 Individual Welfare Judgment: Comparison Between Status Quo and an Alternative; 3.4 Individual Welfare Judgment: Comparison Between Alternatives; 3.4.1 Equivalent Variation; 3.4.2 Compensating Variation; 3.5 Individual Welfare Judgment Based on Consumer Surplus; 3.5.1 PathIndependence and Welfare; 3.5.2 General Case; 3.5.3 When Income Stays Constant; 3.5.4 When Prices of a Subset of Good and Income Vary; 3.6 Consistency of Social Welfare Judgment; 3.6.1 Equivalent Variation; 3.6.2 Compensating Variation; 3.6.3 Consumer Surplus
 NotesReferences; 4 The Assumption of No Income Effect and Quasilinear Preferences ; 4.1 The Reduced TwoGood Model; 4.2 Marginal Willingness to Pay as Marginal Rate of Substitution; 4.3 No Income Effect and Inverse Demand Function; 4.4 Compensating Variation, Equivalent Variation, and Consumer Surplus; 4.5 Partial Equilibrium Reformulated; 4.6 Efficiency and Surplus Maximization; 4.7 Coincidence of Pareto, Kaldor, and Hicks; 4.8 Social Welfare Maximization; Note; References; 5 Is the Approximation Error Large or Small? ; References; 6 Small Income Effects; 6.1 Vives (1987)
 6.2 Deadweight Loss6.3 Asymptotic Quasilinearity; 6.4 Smallness of a Commodity; 6.4.1 Hicksian Aggregation; 6.4.2 The Limit Theorem; 6.5 Application: General Equilibrium and Partial Equilibrium; 6.6 Appendix: Mathematical Details on Linfty(T) ; References; 7 Partial Equilibrium Welfare Analysis Under Uncertainty ; 7.1 Expected Consumer Surplus and Its Aggregate; 7.2 The Preference Condition for Expected Consumer Surplus; 7.3 Incompleteness of Underlying Asset Markets; 7.3.1 Hicksian Aggregation; 7.3.2 The Limit Theorem; 7.3.3 Limit Preference
 Isbn
 9783319566955
 Label
 General Equilibrium Foundation of Partial Equilibrium Analysis
 Title
 General Equilibrium Foundation of Partial Equilibrium Analysis
 Language
 eng
 Summary
 This book addresses the gaps in undergraduate teaching of partial equilibrium analysis, providing a general equilibrium viewpoint to illustrate the assumptions underlying partial equilibrium welfare analysis. It remains unexplained, at least at the level of general economics teaching, in what sense partial equilibrium analysis is indeed a part of general equilibrium analysis. Partial equilibrium welfare analysis isolates a market for a single commodity from the rest of the economy, presuming that other things remain equal, and measures gains and losses by means of consumer surplus. This is a money metric that is supposed to be summable across individuals, recommending policy that maximizes the social surplus. But what justifies such apparently unidimensional practise? Within a general equilibrium framework, the assumption of no income effect is presented as the key condition, and substantive general equilibrium situations in which the condition emerges are presented. The analysis is extended to the case of uncertainty, in which the practice adopts aggregate expected consumer surplus, and scrutinizes when such practice is justified. Finally, the book illustrates partial equilibrium as an institutional artifact, meaning that institutional constraint induces individuals to behave as if they are in partial equilibrium. This volume forms an important contribution to the literature by researching why this disparity persists and the implications for economics education.
 Assigning source
 Provided by publisher
 Cataloging source
 YDX
 Dewey number
 330.1
 Index
 no index present
 LC call number
 HB7174
 Literary form
 non fiction
 Nature of contents
 dictionaries
 http://library.link/vocab/subjectName

 Economics
 Microeconomics
 Education
 Environmental economics
 Label
 General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)
 Carrier category
 online resource
 Carrier category code
 cr
 Carrier MARC source
 rdacarrier
 Content category
 text
 Content type code
 txt
 Content type MARC source
 rdacontent
 Contents

 Preface; Acknowledgements; Contents; List of Figures; 1 Introduction; 1.1 Introduction; 1.2 The Econ 101 Presentation; 1.3 It Can Be Restored, but at Some (Maybe Huge?) Cost; 1.4 Apparent Determinateness; 1.5 Partial Equilibrium as an Institutional Artifact; 2 General Equilibrium Theory; 2.1 Preference and Utility Function; 2.2 Demand and Compensated Demand; 2.2.1 Demand Function and Indirect Utility Function; 2.2.2 Compensated Demand Function, Expenditure Function, and Income Compensation Function; 2.3 Comparative Statics; 2.4 General Equilibrium in Exchange Economies
 2.4.1 Setting and Definitions2.4.2 Efficiency; 2.4.3 Differential Characterization; 2.5 The Compensation Principle; 2.6 Social Welfare Function; 2.6.1 Arrovian Social Welfare Function; 2.6.2 BergsonSamuelson Social Welfare Function; 2.6.3 Negishi Approach; 2.7 General Equilibrium Under Uncertainty; 2.7.1 The Environment; 2.7.2 ArrowDebreu Market; 2.7.3 Sequential Trade; 2.7.4 Market Incompleteness and Efficiency; Notes; References; 3 Income Evaluation of Welfare Change: Equivalent Variation, Compensating Variation, and Consumer Surplus; 3.1 Definitions; 3.1.1 SingleGood Price Change
 3.2 Recovery of Welfare Measure from Marshallian Demand3.3 Individual Welfare Judgment: Comparison Between Status Quo and an Alternative; 3.4 Individual Welfare Judgment: Comparison Between Alternatives; 3.4.1 Equivalent Variation; 3.4.2 Compensating Variation; 3.5 Individual Welfare Judgment Based on Consumer Surplus; 3.5.1 PathIndependence and Welfare; 3.5.2 General Case; 3.5.3 When Income Stays Constant; 3.5.4 When Prices of a Subset of Good and Income Vary; 3.6 Consistency of Social Welfare Judgment; 3.6.1 Equivalent Variation; 3.6.2 Compensating Variation; 3.6.3 Consumer Surplus
 NotesReferences; 4 The Assumption of No Income Effect and Quasilinear Preferences ; 4.1 The Reduced TwoGood Model; 4.2 Marginal Willingness to Pay as Marginal Rate of Substitution; 4.3 No Income Effect and Inverse Demand Function; 4.4 Compensating Variation, Equivalent Variation, and Consumer Surplus; 4.5 Partial Equilibrium Reformulated; 4.6 Efficiency and Surplus Maximization; 4.7 Coincidence of Pareto, Kaldor, and Hicks; 4.8 Social Welfare Maximization; Note; References; 5 Is the Approximation Error Large or Small? ; References; 6 Small Income Effects; 6.1 Vives (1987)
 6.2 Deadweight Loss6.3 Asymptotic Quasilinearity; 6.4 Smallness of a Commodity; 6.4.1 Hicksian Aggregation; 6.4.2 The Limit Theorem; 6.5 Application: General Equilibrium and Partial Equilibrium; 6.6 Appendix: Mathematical Details on Linfty(T) ; References; 7 Partial Equilibrium Welfare Analysis Under Uncertainty ; 7.1 Expected Consumer Surplus and Its Aggregate; 7.2 The Preference Condition for Expected Consumer Surplus; 7.3 Incompleteness of Underlying Asset Markets; 7.3.1 Hicksian Aggregation; 7.3.2 The Limit Theorem; 7.3.3 Limit Preference
 Dimensions
 unknown
 Extent
 1 online resource.
 Form of item
 online
 Isbn
 9783319566955
 Media category
 computer
 Media MARC source
 rdamedia
 Media type code
 c
 Specific material designation
 remote
 System control number
 ocn999440106
 Label
 General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)
 Carrier category
 online resource
 Carrier category code
 cr
 Carrier MARC source
 rdacarrier
 Content category
 text
 Content type code
 txt
 Content type MARC source
 rdacontent
 Contents

 Preface; Acknowledgements; Contents; List of Figures; 1 Introduction; 1.1 Introduction; 1.2 The Econ 101 Presentation; 1.3 It Can Be Restored, but at Some (Maybe Huge?) Cost; 1.4 Apparent Determinateness; 1.5 Partial Equilibrium as an Institutional Artifact; 2 General Equilibrium Theory; 2.1 Preference and Utility Function; 2.2 Demand and Compensated Demand; 2.2.1 Demand Function and Indirect Utility Function; 2.2.2 Compensated Demand Function, Expenditure Function, and Income Compensation Function; 2.3 Comparative Statics; 2.4 General Equilibrium in Exchange Economies
 2.4.1 Setting and Definitions2.4.2 Efficiency; 2.4.3 Differential Characterization; 2.5 The Compensation Principle; 2.6 Social Welfare Function; 2.6.1 Arrovian Social Welfare Function; 2.6.2 BergsonSamuelson Social Welfare Function; 2.6.3 Negishi Approach; 2.7 General Equilibrium Under Uncertainty; 2.7.1 The Environment; 2.7.2 ArrowDebreu Market; 2.7.3 Sequential Trade; 2.7.4 Market Incompleteness and Efficiency; Notes; References; 3 Income Evaluation of Welfare Change: Equivalent Variation, Compensating Variation, and Consumer Surplus; 3.1 Definitions; 3.1.1 SingleGood Price Change
 3.2 Recovery of Welfare Measure from Marshallian Demand3.3 Individual Welfare Judgment: Comparison Between Status Quo and an Alternative; 3.4 Individual Welfare Judgment: Comparison Between Alternatives; 3.4.1 Equivalent Variation; 3.4.2 Compensating Variation; 3.5 Individual Welfare Judgment Based on Consumer Surplus; 3.5.1 PathIndependence and Welfare; 3.5.2 General Case; 3.5.3 When Income Stays Constant; 3.5.4 When Prices of a Subset of Good and Income Vary; 3.6 Consistency of Social Welfare Judgment; 3.6.1 Equivalent Variation; 3.6.2 Compensating Variation; 3.6.3 Consumer Surplus
 NotesReferences; 4 The Assumption of No Income Effect and Quasilinear Preferences ; 4.1 The Reduced TwoGood Model; 4.2 Marginal Willingness to Pay as Marginal Rate of Substitution; 4.3 No Income Effect and Inverse Demand Function; 4.4 Compensating Variation, Equivalent Variation, and Consumer Surplus; 4.5 Partial Equilibrium Reformulated; 4.6 Efficiency and Surplus Maximization; 4.7 Coincidence of Pareto, Kaldor, and Hicks; 4.8 Social Welfare Maximization; Note; References; 5 Is the Approximation Error Large or Small? ; References; 6 Small Income Effects; 6.1 Vives (1987)
 6.2 Deadweight Loss6.3 Asymptotic Quasilinearity; 6.4 Smallness of a Commodity; 6.4.1 Hicksian Aggregation; 6.4.2 The Limit Theorem; 6.5 Application: General Equilibrium and Partial Equilibrium; 6.6 Appendix: Mathematical Details on Linfty(T) ; References; 7 Partial Equilibrium Welfare Analysis Under Uncertainty ; 7.1 Expected Consumer Surplus and Its Aggregate; 7.2 The Preference Condition for Expected Consumer Surplus; 7.3 Incompleteness of Underlying Asset Markets; 7.3.1 Hicksian Aggregation; 7.3.2 The Limit Theorem; 7.3.3 Limit Preference
 Dimensions
 unknown
 Extent
 1 online resource.
 Form of item
 online
 Isbn
 9783319566955
 Media category
 computer
 Media MARC source
 rdamedia
 Media type code
 c
 Specific material designation
 remote
 System control number
 ocn999440106
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