For the second half of the first term of 1974-75, Martin Weitzman distributed a 100 page typescript for his lectures in the four half-course sequence of core microeconomic theory. The typescript consisted of 87 pages of lecture notes, 10 pages of final exam questions from previous years and three pages of course outline and select references. The order of Robert Bishop’s and Weitzman’s courses were reversed starting with the 1974-75 academic year so that the numbering for Weitzman’s course was changed from 14.121 to 14.122.
Weitzman’s course outline and reading list have been transcribed below.
The final exam questions for this Fall, Term 1974 course have been posted earlier. Note: the old course numbering was used (14.121) on the exam. In a coming post I’ll provide the final exam questions from earlier years.
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Course Description corresponding to 14.122
14.121 Microeconomic Theory I
Prereq.: 14.04
Year: G(1)
2-0-4
[Instructors: D. K. Foley (1972/73); Martin Weitzman (1973/74)]
Introduction to the theory of resource allocation and the price system. Decentralization of economic decisions. Competitive equilibrium Pareto optimality. Productive efficiency.
Source:
M.I.T. Annual Catalogue, 1972/73, p. 95D.
M.I.T. Annual Catalogue, 1973/74, p. 268.
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Outline and Selected References
Topics
Activity Analysis Model of Production
Activity Vectors
Production Sets
Production Functions
Prices and Efficiency
Price Systems
Profit Maximization
Efficiency
Duality Theory
Convexity
Separating Hyperplanes
Shadow Prices
Cost Functions and Factor Demand
Comparative Systems and Other Applications
Efficiency Prices and Decentralized Decision Making
Externalities and Non-Convexities
Efficiency and Distribution
Foundations of Cost Benefit Analysis
Background References
(if time permits, it might be useful to read these before taking 14.122)
T.C. Koopmans, Essay I in Three Essays on the State of Economic Science.
W.J. Baumol, Operations Research and Economic Theory, chs. 1-8, 12, 21.
Reading List(14.122)
Readings should be considered as background material for the lectures. At certain times they can be of help in clarifying a topic which has been only briefly treated in class. The reading material listed here is redundant to some extent and the degree to which you will wish to consult outside reading sources should depend among other things on your preparation for the course and the extent to which you feel you understand the subject matter.
The reading list is arranged by topics.
- The Activity Analysis Model
A.S. Manne, Economic Analysis for Business Decisions, chs. 1, 2.
E. Malinvaud, Lectures on Microeconomic Theory, ch. 3, sects. 1-3.
Dorfman, Samuelson, and Solow, Linear Programming and Economic Analysis, ch. 6.
T.C. Koopmans, ch. 1, ch. 3, sects. 3.1-3.7, of “Allocation of Resources and the Price System”, essay 1 of Three Essays on the State of Economic Science.
W.J. Baumol, Operations Research and Economic Theory, ch. 12.
G.W. Dantzig, Linear Programming and Extensions, chs. 1-3.
D. Gale, The Theory of Linear Economic Models, ch. 1, sect. 1
- Prices and Efficiency
L.V. Kantorovich, The Best Use of Economic Resources, intro. and ch. 1.
Koopmans, ch. 3, sects. 3.8-3.14.
Malinvaud, ch. 3, sects. 4-8.
- Duality Theory
D. McFadden, An Econometric Approach to Production Theory.
Gale, ch. 1, sects. 2-4.
Dantzig, ch. 12.
Dorfman, Samuelson, and Solow, chs. 7,8.
- Applications and Extensions
T.C. Koopmans, “Efficient Allocation of Resources” and “Uses of Prices”, pp. 211-221 and 243-257 in Scientific Papers of Tjalling C. Koopmans.
Baumol, ch. 8, sects. 1-3, ch. 16.
W. Nicholson, Microeconomic Theory, pp. 451-456, ch. 25.
M.L. Weitzman, “Free Access vs. Private Ownership as Alternative Systems for Managing Common Property”, paper on reserve.
T. Scitovsky, Welfare and Competition, chs. 12-14.
Source: Personal copy of Irwin Collier.
Image Source: Detail from 1976 MIT economics department group picture.