An Introduction to Welfare Economics
A.Y. 2019/2020
Learning objectives
The course is designed to provide an introduction to the conceptual apparatus of modern Welfare Economics. Its objective is to equip the students with the basic analytical tools required to read and understand contemporary literature in both theoretical and applied Welfare Economics.
Expected learning outcomes
By attending the Lab activities the students will learn how to evaluate economic policy measures aimed at improving social welfare.
Lesson period: Second semester
Assessment methods: Giudizio di approvazione
Assessment result: superato/non superato
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Lesson period
Second semester
Course syllabus
The focus of the course is both theoretical and applied. The two Fundamental Theorems of Welfare Economics will be introduced and critically discussed. An introduction to social welfare analysis will be provided. Game-theoretic foundations of general competitive analysis will be reviewed. Welfare effects of economic changes and policy measures will be discussed in both a general and a partial equilibrium framework. Perfectly competitive and monopolistic markets will be compared from a welfare perspective.
1. The Two Fundamental Theorems of Welfare Economics in a Competitive General Equilibrium Context
2. First-Order Conditions for Walrasian Equilibria, Pareto Optima, and Social Welfare Optima
3. Coalitional Game Theory: Core and Competitive Equilibria
4. Partial Equilibrium Competitive Analysis
5. The Two Fundamental Theorems of Welfare Economics in a Competitive Partial Equilibrium Context
6. Welfare Evaluation of Economic Changes: Money Metric, Equivalent Variation and Compensating Variation
7. Welfare Analysis in the Partial Equilibrium Model: The Marshallian Surplus
8. Free-Entry and Long-Run Competitive Equilibria
9. Monopoly Pricing
10. Perfect Competition vs. Monopoly: A Comparison from a Welfare Perspective
1. The Two Fundamental Theorems of Welfare Economics in a Competitive General Equilibrium Context
2. First-Order Conditions for Walrasian Equilibria, Pareto Optima, and Social Welfare Optima
3. Coalitional Game Theory: Core and Competitive Equilibria
4. Partial Equilibrium Competitive Analysis
5. The Two Fundamental Theorems of Welfare Economics in a Competitive Partial Equilibrium Context
6. Welfare Evaluation of Economic Changes: Money Metric, Equivalent Variation and Compensating Variation
7. Welfare Analysis in the Partial Equilibrium Model: The Marshallian Surplus
8. Free-Entry and Long-Run Competitive Equilibria
9. Monopoly Pricing
10. Perfect Competition vs. Monopoly: A Comparison from a Welfare Perspective
Prerequisites for admission
The students are expected to fully master the topics dealt with in the course of Advanced Microeconomics - Master Program in Environmental and Food Economics.
Teaching methods
The Laboratory will consist of a series of lessons and classes, where the students will have the opportunity to interact with the instructor and to participate in collective activities.
Teaching Resources
Mas-Colell A., M. D. Whinston, and J. R. Green, Microeconomic Theory, Oxford Univerity Press, Oxford, 1995, Chapters 3.I, 10, 16, 18.B, 22.B, 22.C.
Assessment methods and Criteria
The learning progress of the class will be systematically tested over the entire duration of the course. The students will be asked to prepare short essays to be publicly presented and discussed. The final assessment will be based on the joint evaluation of the individual participation in both class activities and essay elaboration.
At least 80% of the meetings (at least 16 hours) must be attended to qualify for a pass.
At least 80% of the meetings (at least 16 hours) must be attended to qualify for a pass.
SECS-P/01 - ECONOMICS - University credits: 3
Humanities workshops: 20 hours
Professor:
Donzelli Franco
Shifts:
-
Professor:
Donzelli Franco