Syllabus
Economics of Welfare, Econ 246
Spring 2013
Time: Monday & Wednesday - 1:50 PM to 3:00 PM, Friday 2:20 PM to 3:20 PM
Classroom: Willis 205
Instructor: Muhammad Faress Bhuiyan
E-mail: [email protected]
Telephone: x4395 (Office)
Office Hours: Mon 3:30 PM to 4:30 PM, Tue 2:00 PM to 4:00 PM, Fri 4:30 PM to 5:30 PM
Course Description: This course presents economic theory on how the society as a whole ranks
and chooses between different alternatives. It delves into the realm of normative economics
analyzing objectives a society may want to pursue, mechanisms designed to reach the objectives,
and the resulting welfare of individuals affected by the choices made. The theoretical tools
presented in the course will be used to study different mechanisms of voting, redistribution of
income, government intervention, auctions, and trade. Among other things, students will be
exposed to the Pareto criterion, Arrow’s impossibility theorem, Vickrey-Clarke-Grove
mechanism, Coase theorem, utilitarianism, Rawlsian ethics, and welfare theorems.
Pre-requisites: Economics 110 and 111
Textbook: Allan M. Feldman and Roberto Serrano, Welfare Economics and Social Choice
Theory, 2nd edition.
Supplemental readings/articles will be required for some chapters. These articles may be
discussed during classes and students will be tested on the material in the midterm and final
examination irrespective of whether it is covered in class.
Course evaluation: Evaluation will be based on one mid-term and one final exam (together
worth 60% of your grade), five quizzes (worth 15% of your grade), and six assignments (worth
10% of your grade). Students who receive a higher absolute grade in the final will have 40% of
the weight assigned to the final and 20% to the midterm. Similarly, students who receive a higher
absolute grade in their midterm will have 40% of the weight assigned to the midterm and 20% to
the final examination. You will have at least a week for each assignment – the due date for the
assignment will be indicated on the assignment. If you fail to hand in an assignment, you will
receive a score of 0 on that assignment. Late assignments will not be accepted. The worst grade
of the problem sets will be dropped. The quiz with the lowest grade will also be dropped. There
are no make-up exams in this class. If, for any reason at all, you miss the mid-term exam, the
weight of the mid-term exam will be added to the final exam. The dates for the mid-term and
final exams are already indicated on the course outline. Please note that the final exam is
cumulative. Two papers worth 10% each will be due on the dates indicated in the syllabus.
Extra Reading: Students will be asked to read certain journal articles on their own. The articles
will be made known as the course progresses.
Please Note:
(1) Carleton College is committed to providing reasonable accommodations to students with
disabilities. It is the responsibility of the student seeking accommodation to contact the
Coordinator of Disability Services, Andy Christensen, at 222-4464 or [email protected], to
begin the process. Please inform me of any arrangements at least a week before the scheduled
exam/quiz/presentation.
(2) If you need help with writing, brushing up on mathematics, and/or public speaking use the
services of the writing center, the math skill center, and speakeasy. Another useful resource for
students is the academic skills coaching which provides guidance with time management, testpreparation strategies, and study skills. Check out https://apps.carleton.edu/campus/asc/ for links
to all of the mentioned programs.
(3) Plagiarism and academic dishonesty will not be tolerated in my class. In case you are not
familiar with Carleton’s definitions and policies regarding these issues please consult the
following link:
http://apps.carleton.edu/campus/doc/integrity/complete/
(4) For general and economics specific writing tips you are strongly encouraged to check out:
http://apps.carleton.edu/curricular/econ/WritingGuide
Detailed Schedule
Topics
April
May
June
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Friday
Monday
Wednesday
Monday
1
3
5
8
10
12
15
17
19
22
24
26
29
1
3
6
8
10
13
15
17
20
22
24
27
29
31
3
5
8
Introduction
Proofs, Refresher, Preferences
Pref. & Existence of Utility Function
Arrows Impossibility Theorem (AIT)
Arrows Impossibility Theorem (AIT)
Arrows Impossibility Theorem (AIT)
Single Peaked Preferences
Pareto Criterion
Barter Exchange
Barter Exchange
Market Exchange
Market Exchange
Compensation Criterion
Midterm Review
Midterm (in class)
MIDTERM BREAK
Compensation Criterion
Fairness And Rawlsian Criterion
Incentives & Game Theory
Efficient Auctions & Externality
VCG Mechanism
VCG Mechanism
2nd Best Mechanisms: Public Good
Public Good: Large Population
2nd Best Mechanisms: Trade
2nd Best Mechanisms: Market
Auctions & Profit Maximization
Competitive Market
Final Review
Final Exam (8:30 AM to 11:00 AM)
Readings
Chap. 1
Chap. 1
Chap. 13
Chap. 13
Chap. 13
Chap. 12
Chap. 2/9
Chap. 2
Chap. 2
Chap. 3
Chap. 3
Chap 9
Chap. 9
Chap. 10
Ely: Wk. 2
Ely: Wk. 2.5
Ely: Wk 3
Ely: Wk 3
Ely: Wk 4
Ely: Wk 6.5
Ely: Wk 4
Ely: Wk 5
Ely: Wk 7
Ely: Wk 8
Quiz & PS
QZ 1
PS 1 due
QZ 2
PS 2 due
QZ 3
PS 3 due
Paper 1 due
QZ 3
PS 4 due
QZ 4
PS 5 due
QZ 5
PS 6 due, Paper 2 due