- Acknowledgments
- 1. Why Study General Equilibrium?
- 2. The General Equilibrium Model

- Commodities
- Allocations
- Utility Functions
- Economies

- 3. Economic Efficiency

- Definition of Pareto Optimality
- Existence of Pareto Optimal Allocations; The Bolzano–Weierstrass Theorem
- The Utility Possibility Frontier
- The Calculation of Pareto Optima; Homogeneous Functions
- Pareto Optimality and Optimality: Minkowski’s Separation Theorem
- The Structure of the Utility Possibility Frontier
- Compactness of the Set of Feasible Allocations
- Problem Set

- 4. Competitive Equilibrium

- The Definition of Competitive Equilibrium
- Properties of Market Excess Demand and Equilibrium
- Offer Curves
- Equilibrium with Constant Returns to Scale
- Computation of Competitive Equilibrium in Simple Examples
- Aggregate Input-Output Possibility Sets
- An Incomplete Theorem on the Existence of Equilibrium
- A Complete Theorem on the Existence of Equilibrium
- An Example of Discontinuous Behavior of Equilibria
- Problem Set

- 5. The Welfare Theorems

- The First Welfare Theorem
- The Second Welfare Theorem
- Another Complete Theorem on the Existence of Equilibrium
- Problem Set

- 6. The Kuhn–Tucker Approach to General Equilibrium Theory

- Kuhn–Tucker Theorem
- Kuhn–Tucker Coefficients
- The Kuhn–Tucker Interpretation of Competitive Equilibrium
- The Differentiable Case
- Proof of the Kuhn&ndsah;Tucker Theorem
- Problem Set

- 7. Arrow–Debreu Equilibrium

- The Arrow–Debreu Model
- Arrow Equilibrium
- Insurance
- Incomplete Markets and the Definition of Profit Maximization
- Problem Set

- 8. Rational Expectations Equilibrium and the Permanent Income Hypothesis

- The Permanent Income Hypothesis
- Rational Expectations Equilibrium
- Short-Run Equilibrium
- Consumer Surplus
- The Stability of Short-Run Equilibrium
- Problem Set

- 9. Samuelson’s Overlapping Generations Model

- Overlapping Generations with a Finite Time Horizon
- Inefficiency with an Infinite Horizon
- Pareto Optimal Equilibria
- Stationary Discounted Optima and Equilibria
- Nonuniqueness of Equilibrium
- Discounted Optimality and Equilibrium
- Undiscounted Optimality and Equilibrium
- Uniqueness of Optimal Allocations
- Existence of Optimal Allocations
- Problem Set

- 10. The One-Sector Growth and Diamond Overlapping Generations Models

- The One-Sector Diamond and Optimal Growth Models
- Inefficiency
- Pareto Optimal Equilibria
- Stationary Discounted Optima and Equilibria
- Social Security
- Population Growth
- Discounted Optimal and Equilibrium Allocations
- Discounted Optimal and Equilibrium Programs
- Program Efficiency and the Hahn Problem
- Euler’s Equation
- Policy Functions and the Value Function
- The Turnpike Theorem
- Equilibrium, Optimality, and the Turnpike Theorem in the Undiscounted Case
- Existence of Optimal Allocations and Programs
- Problem Set

- 11. A Critical Assessment
- References
- Index

# General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory

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Publication Date: 02/28/2007