Microeconomics and General Equilibrium And Welfare Economics by A. Hamid Shahid

Microeconomics and General Equilibrium and Welfare Economics

Relevant for:

• BS Economics
• BS 4 Years Economics
• BSc/ADS/ADP in Economics
• MA Economics
• Masters in Economics
• Undergraduate Economics Students

Topics Covered:

1. Microeconomics Overview

   • Theory of the Consumer: Utility theory, demand, and consumer preferences.
   • Theory of the Firm: Production, costs, and supply curve.
   • Market Structures: Perfect competition, monopoly, oligopoly, monopolistic competition.
   • Market Failure: Externalities, public goods, and the role of government intervention.

2. General Equilibrium Theory

   • Partial and General Equilibrium: How various markets interact to form equilibrium in the economy.
   • Edgeworth Box Diagram: Concept and use in analyzing general equilibrium in a two-good economy.
   • Walrasian General Equilibrium: Understanding the overall equilibrium of multiple markets.
   • Arrow-Debreu Model: Mathematical framework for general equilibrium.

3. Welfare Economics

   • Pareto Efficiency: Criteria for evaluating the allocation of resources and welfare.
   • Social Welfare Functions: Various approaches to assessing the welfare of society as a whole.
   • Market and Government Failure: When markets fail to achieve optimal outcomes and the role of policy interventions.
   • Kaldor-Hicks Compensation Criterion: Examining the fairness of distributional changes in welfare economics.

4. Applications in Policy

   • Efficiency vs. Equity: Balancing welfare economics with fair distribution of income.
   • Redistributive Policies: Taxation, transfers, and government intervention to promote equity.
   • Environmental Economics: The welfare implications of externalities like pollution and resource depletion.

Importance for Students:

• Microeconomics forms the foundation of economic theory, focusing on individual decisions and market interactions.
• General Equilibrium Theory provides a framework for understanding the interactions of all markets in an economy.
• Welfare Economics delves into the implications of economic policies on social welfare, efficiency, and equity.

Ideal For:

• Students studying microeconomics as part of their undergraduate economics program.
• Students pursuing advanced degrees such as MA in Economics or Masters in Economics.
• Anyone interested in understanding the impact of policies on overall economic welfare and societal well-being.

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Writer         ✤             A. Hamid Shahid
Publishers  ✤              ILMI KITAB KHANA