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Microeconomic Theory II, Spring, 2009
Professor Harvey Gram, Graduate Center, Room 5304; and New School
Office Hours: Tuesday at Graduate Center and Thursday at New School, by appointment
Email: Harvey.Gram@qc.cuny.edu
Main Texts:
1. E. Silberberg and W. Suen (2001). The Structure of Economics: A Mathematical
Analysis, 3rd edition, McGraw-Hill. ISBN: 0072343524
2. Alpha Chiang (1999). Elements of Dynamic Optimization, Waveland Press. ISBN:
157766096X.
Other Books cited in notes on various topics:
1. W. J. Baumol (1977). Economic Theory and Operations Analysis, 4th edition,
Prentice-Hall.
2. S. Bowles (2003), Microeconomics: Behavior, Institutions and Evolution,
Princeton University Press.
3. Mas-Collell, M.D. Whinston and J.R. Green (1995). Microeconomic Theory,
Oxford University Press.
4. H. Varian (1992). Microeconomic Analysis, 3rd edition, Norton.
5. L.L. Pasinetti (1977). Lectures on the Theory of Production, Columbia University
Press.
6. H. D. Kurz and Neri Salvadori (1995). Theory of Production, A Long-Period
Analysis, Cambridge University Press.
7. V. C. Walsh and H. N. Gram (1980). Classical and Neoclassical Theories of
General Equilibrium, Oxford University Press.
8. P. Sraffa (1960). Production of Commodities by Means of Commodities,
Cambridge University Press.
9. Michael R. Caputo (2005), Foundations of Dynamic Economic Analysis: Optimal
Control and Application, Cambridge University Press.
10. Andre Burgstaller (1994). Property and Prices, Cambridge University Press.
11. Akira Takayama (1985). Mathematical Economics, 2nd edition.
Baumol (1977) is an older book that takes a programming approach to various economic
problems. Bowles (2003) takes a game-theoretic approach to problem of explaining the
emergence of economic institutions. Mas-Colell, Whinston and Green (1995) is
encyclopedic and serves as a reference, especially for proofs. Varian (1992) is widely
used, with coverage similar to that found in Silberberg and Suen (2001). Pasinetti (1977)
deals with input/output theory in the tradition of Leontief and Sraffa. Kurz and Salvadori
(1995) brings together much of the theoretical work inspired by Sraffa (1960). Walsh and
Gram (1980) covers some of the same results. Caputo (2005) is a more rigorous treatment
of the theory introduced in Chiang (1999). Burgstaller (1994) uses dynamic optimization
to argue that there are bridges between mainstream economic theory and some of the
models used by its Sraffian critics, in particular, the von Neumann growth model.
Takayama (1985) is a reference for mathematical results that I like. There are others.
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Topics.
1. Optimization and Duality
Silberberg and Suen (2001), chapters 6-11; Varian (1992), chapters 1-9
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first and second order conditions, quadratic forms
the envelope theorem and comparative statics
profit functions, cost functions, expenditure functions: elasticity restrictions
Le Châtelier results
functional forms in estimation
2. Linear and Non-linear Programming
Silberberg and Suen (2001) chapters 14 and 17
Baumol (1977), chapters 5-8
W.J. Baumol and M.L. Balinski (1968). “The Dual in Nonlinear Programming and its
Economic Interpretation,” Review of Economic Studies, Vol. XXXV, pp. 237-56. In
Selected Economic Writings of William J. Baumol (1977), chapter 23.
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primal and dual problems
saddle points
rent and the non-linear dual
3. General Equilibrium
R.W. Jones (1965), “The Structure of Simple General Equilibrium Models,” Journal of
Political Economy, December.
R.W. Jones and J. Scheinkman (1977), “The Relevance of the Two-Sector Production
Model in Trade Theory,” Journal of Political Economy, October.
P.A. Samuelson (1953), “Prices of Factors and Goods in General Equilibrium,” Review of
Economic Studies, Vol. XXI, pp. 1-20.
Silberberg and Suen (2001) chapter 18
Varian (1992), chapter 21
4. Leontief/Sraffa input-output models
Pasinetti (1977), chapters 4-6
Walsh and Gram (1980), chapters 11, 12, 13, and 15
5.Time
Silberberg and Suen (2001), chapters 12 and 20
Varian (1992), chapter 19 and 20
Chiang (1999).
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6.Risk
Silberberg and Suen (2001), chapters 13
Varian (1992) chapter 11
7.Agency
Silberberg and Suen (2001), chapters 15
Varian (1992) chapter 25
8.Information
Silberberg and Suen (2001), chapters 16