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The Resource General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)

General Equilibrium Foundation of Partial Equilibrium Analysis, (electronic book)

Label
General Equilibrium Foundation of Partial Equilibrium Analysis
Title
General Equilibrium Foundation of Partial Equilibrium Analysis
Subject
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 uni-dimensional 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.--
Member of
Assigning source
Provided by publisher
Cataloging source
YDX
Dewey number
330.1
Index
no index present
LC call number
HB71-74
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)
Instantiates
Publication
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 Bergson-Samuelson Social Welfare Function; 2.6.3 Negishi Approach; 2.7 General Equilibrium Under Uncertainty; 2.7.1 The Environment; 2.7.2 Arrow-Debreu 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 Single-Good 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 Path-Independence 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 Quasi-linear Preferences ; 4.1 The Reduced Two-Good 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 Quasi-linearity; 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)
Publication
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 Bergson-Samuelson Social Welfare Function; 2.6.3 Negishi Approach; 2.7 General Equilibrium Under Uncertainty; 2.7.1 The Environment; 2.7.2 Arrow-Debreu 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 Single-Good 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 Path-Independence 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 Quasi-linear Preferences ; 4.1 The Reduced Two-Good 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 Quasi-linearity; 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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