General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory

This book provides an excellent introduction to general equilibrium theory, the cornerstone of modern economic analysis. Not only is the book accessible, but it is thorough and deep. Truman Bewley manages to distill the essence of important results of the theory, while losing none of their rigor or elegance. The book is essential reading for both students and researchers interested in the foundations of economic analysis. -- Daron Acemoglu, Massachusetts Institute of Technology

This book presents general equilibrium theory for advanced undergraduate and graduate-level economics students. It discusses economic efficiency, competitive equilibrium, the welfare theorems, the Kuhn-Tucker approach to general equilibrium, the Arrow-Debreu model, and rational expectations equilibrium and the permanent income hypothesis.This book presents an original exposition of general equilibrium theory for advanced undergraduate and graduate-level students of economics. It contains detailed discussions of economic efficiency, competitive equilibrium, the first and second welfare theorems, the Kuhn-Tucker approach to general equilibrium, the Arrow-Debreu model, and rational expectations equilibrium and the permanent income hypothesis. Truman Bewley also treats optimal growth and overlapping generations models as special cases of the general equilibrium model. He uses the model and the first and second welfare theorems to explain the main ideas of insurance, capital theory, growth theory, and social security. It enables him to present a unified approach to portions of macro- as well as microeconomic theory. The book contains problems sets for most chapters.