ECON 251: Financial Theory
Lecture 03 - Computing Equilibrium. Our understanding of the economy will be more tangible and vivid if we can in principle explain all the economic decisions of every agent in the economy. This lecture demonstrates, with two examples, how the theory lets us calculate equilibrium prices and allocations in a simple economy, either by hand or using a computer. In future lectures we shall extend this method so as to compute equilibrium in financial economies with stocks and bonds and other financial assets. (from oyc.yale.edu)
| Lecture 03 - Computing Equilibrium |
| Time | Lecture Chapters |
| [00:00:00] | 1. Introduction |
| [00:02:48] | 2. Welfare and Utility in Free Markets |
| [00:16:52] | 3. Equilibrium amidst Consumption and Endowments |
| [00:32:43] | 4. Anticipation of Prices |
| [00:52:53] | 5. Log Utilities and Computer Models of Equilibrium |
| References |
| Lecture 3 - Computing Equilibrium Instructor: Professor John Geanakoplos. Transcript [html]. Audio [mp3]. Download Video [mov]. |
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