## Welfare Economics(ECON463)

Course Code Course Name Semester Theory Practice Lab Credit ECTS
ECON463 Welfare Economics 6 3 0 0 3 4
 Language of Instruction French Course Type Elective Course Level Bachelor Degree Course Instructor(s) Sahir KARAKAYA skarakaya@gsu.edu.tr (Email) Assistant Objective Static optimization is one of the main tools of the theory and practice of economics. This course aims to provide a quite rigorous introductory knowledge of this tool, and make use of it in simple equilibrium models. And in the same time to utilize these models to master the tool. Content This course aims to teach nonlinear programming and to deal with small equilibrium models, with two goods, two cosumers, two producers and two factors, as an application of this mathematical tool. The walrasian exchange model, the Lindahlian exchange model, and an exchange externality model and their corresponding pareto optimums are treated. Then, the walrasian production model is studied, and two simple models of general equilibrum are established. Course Learning Outcomes 1- To learn nonlinear programming,2- study the static general equilibrium with differentible functions,3- in an axiomatic way. Teaching and Learning Methods References Sydsaeter, Hammond, Mathematics for economic analysis.Sydsaeter, Hammond, Further mathematics for economic analysis.Simon, Blume, Mathematical economics.Silberberg, The structure of economics, a mathematical analysis.
###### Theory Topics
Week Weekly Contents
1 Concavity, quasiconcavity. Optimization with equality constraints.
2 The notion of gradient. Optimization with inequality constraints.
3 Consumer equilibrium as an application of nonlinear programming.
4 Walrasian exchange equilibrium. Walras identity, Walras law.
5 Pareto optimum.
6 A simple public economy model.
7 Public good, private good. Samuelson condition. Quasilinear functions.
8 Allocation and distribution problem.
9 Exchange equilibrium with public good and private good. Lindahl equilibrium. « Lindahl identity, « Lindahl law ».
10 Pareto optimum for Lindahl equilibrium.
11 Externality as a public good.
12 Pareto optimum for externality model.
13 Walras equilibrium for production.
14 General equilibrium.
###### Practice Topics
Week Weekly Contents
Number Contribution
Contribution of in-term studies to overall grade 2 50
Contribution of final exam to overall grade 1 50
Toplam 3 100
###### In-Term Studies
Number Contribution
Assignments 0 0
Presentation 0 0
Midterm Examinations (including preparation) 1 42
Project 0 0
Laboratory 0 0
Other Applications 0 0
Quiz 1 14
Term Paper/ Project 0 0
Portfolio Study 0 0
Reports 0 0
Learning Diary 0 0
Thesis/ Project 0 0
Seminar 0 0
Other 0 0
Toplam 2 56
No Program Learning Outcomes Contribution
1 2 3 4 5
1 Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches
2 Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields
3 Show a sound understanding of current economic discussions and problems
4 Have an effective and clear communication in written and oral formats in different public and professional contexts.
5 Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history
7 Demonstrate knowledge of standard quantitative techniques and empirical models used in economics
8 Show ability to apply basic economic theory to an applied topic
9 Show a basic understanding of analytical methods, both theory- and model-based
10 Show ability to use economic concepts to discuss current economic issues
11 Reason logically and work analytically
12 Show awareness on social aspects of the economics in different applied and theoretical fields
13 Identify appropriate economic models to analyse problems
16 Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work
17 Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy
Class Hours 0 42 0
Working Hours out of Class 0 42 0
Assignments 0 0 0
Presentation 0 0 0
Midterm Examinations (including preparation) 0 21 0
Project 0 0 0
Laboratory 0 0 0
Other Applications 0 0 0
Final Examinations (including preparation) 0 42 0
Quiz 0 0 0
Term Paper/ Project 0 0 0
Portfolio Study 0 0 0
Reports 0 0 0
Learning Diary 0 0 0
Thesis/ Project 0 0 0
Seminar 0 0 0
Other 0 0 0