Atkinson, A. B. and J. E. Stiglitz (1980), Lecture 1

Hindriks, J. and G. D. Myles (2006), Chapters 1-4

Aghion, P. (2012), "From Growth Theory to Growth Policy Design," Institute for Government, LSE Working Paper

Arrow, K. J. and F. H. Hahn (1971), General Competitive Analysis, Amsterdam: North-Holland.

1. Consider a competitive exchange economy with two consumers and two goods. Suppose that consumer 2' has initial endowments of = (w'i, Lug), where w;- > 0, 2' = 1, 2 and j = 1, 2. His preferences are given by the following utility function: Ui = aln(a:"]) + (1 a) ln(:c), where 0