• 2419 views

    Lec 2- Utilities, Endowments, and Equilibrium

    "Lec 2- Utilities, Endowments, and Equilibrium" Financial Theory (ECON 251) This lecture explains what an economic model is, and why it allows for counterfactual reasoning and often yields paradoxical conclusions. Typically, equilibrium is defined as the solution to a system of simultaneous equations. The most important economic model is that of supply and demand in one market, which was understood to some extent by the Ancient Greeks and even by Shakespeare. That model accurately fits the experiment from the last class, as well as many other markets, such as the Paris Bourse, online trading, the commodities pit, and a host of others. The modern theory of general economic equilibrium described in this lecture extends that model to continuous quantities and multiple commodities. It is the bedrock on which we will build the model of financial equilibrium in subsequent lectures. 00:00 - Chapter 1. Introduction 07:04 - Chapter 2. Why Model? 13:30 - Chapter 3. History of Markets 24:41 - Chapter 4. Supply and Demand and General Equilibrium 37:59 - Chapter 5. Marginal Utility 45:20 - Chapter 6. Endowments and Equilibrium Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Fall 2009.

    Video is embedded from external source so embedding is not available.

    Video is embedded from external source so download is not available.

    Channels: Finance

    Tags: Lec 2- Utilities, Endowments, and Equilibrium

    Uploaded by: ( Send Message ) on 12-09-2012.

    Duration: 72m 17s

    Here is the next lecture for this course

    Watch NEXT
    LECTURE
    2711 views     How chemical equilibrium is achieved in cells

    Lec 3 - Computing Equilibrium

     01:14:31
    Lecture List | Course Details | Contents | Related

    No content is added to this lecture.

    Go to course:

    This video is a part of a lecture series from of Yale