Open course ware

[SQUEAKING] [RUSTLING] [CLICKING] ROBERT M. TOWNSEND: Let's think about where we are in the class. You should have the calendar in front of you. So we're at lecture 7 today. This is kind of a big moment because we're fully embracing general equilibrium although you've seen versions of it before. The other thing would be the reading list. For today, there is not a lot of new material on the reading is, not a lot of starred materials. We're going to do Pareto optimality. And the assigned starred reading is some of the sections in Kreps, which is available on the Canvas website, so not much additional stuff to read. We're going to do risk sharing at the end of it and then look-- get in more into the applications in lectures 8 and 9. In terms of the study guide-- so, again, let me ask you a few questions. We did dynamic optimization last time. And the first question is really the motivation, but not everything-- the motivation and the economic problems...

[SQUEAKING] [RUSTLING] [CLICKING] ROBERT M. TOWNSEND: Let me remind you from the reading list where we are. We did the introductory lecture, of course, about economic science. And last time, we did our first nuts and bolts lecture on preferences, consumer theory, with the associated starred readings. And today, we're going to do more the way we ended the last class on consumer behavior. I'm showing this reading list because I just want to remind you that these starred articles do exist. The Nicholson and Schneider chapter 5, from which this is drawn, although not entirely. And also, this Jensen and Miller paper, which I will say a few words about today because it fits into this lecture, but also, as I probably mentioned too many times, that's also a big part of your first problem set and involves getting that paper, reading the yellow markings as highlights, accessing the data that these guys used, and running through some of their calculations. So that's ...

[SQUEAKING] [RUSTLING] [CLICKING] ROBERT M. TOWNSEND: OK. Greetings, everyone. Thank you for coming today. I'll say a few things. So in terms of the calendar, and we're finishing off this section right before Thanksgiving break, when I get-- excuse me, on identification today. We're on that momentarily. Then, we have two formal lectures after the break, on Tuesday, Thursday. So that's the calendar. Then, in terms of the readings today, it's important to point out, the section on identification and falsification we're about to do, there are three starred readings, and they all come from Varian, and they're all really, really good. In fact, I had to abbreviate in spots, in order to cover all the topics. So we are drawing on this material in part, and you will find it useful. Again, it's not the whole book. It's just Varian, in these sections, 8.1 through 8.3, 8.5, and 8.7. Then, from last time, let's have a little bit of a discussion....