3.7 — Welfare Economics — Readings
Monday, October 26, 2020
- End of Ch.11 “Walras and General Equilibrium Theory” (on Pareto) in Landreth & Colander
- Ch.13 “General Equilibrium and Welfare Economics” in Blaug
- Blaug, 1996, “The Marginal Conditions” excerpt pp.577-579
- Humphrey, 1996, “The Early History of the Box Diagram”
- Persky, 2002, “Retrospectives: Pareto’s Law”
- Colander, 2007, “Retrospectives: Edgeworth’s Hedonimeter and the Quest to Measure Utility”
- Gabaix, 2016, “Power Laws in Economics”
The following Wikipedia entries can also provide more background:
Questions to Help Your Reading
What are indifference curves?
What is the contract curve?
What does a “determinate” vs. an “indeterminate” outcome of exchange mean?
Explain the Edgeworth box.
What is a Pareto improvement? What does Pareto optimal mean?
What are the two fundamental theorems of welfare economics?
What are the marginal conditions at an optimum?