These notes provide detailed exam essay structures on various topics within advanced microeconomics such as: general equilibrium; welfare economics and the theory of cost-benefit analysis. Two Notes include the mathematical models of pareto optimality and consumer surplus, with detailed essay structures analysing the models in context. The third set of notes analyses the trade off between different measurements of welfare; compensation tests and social welfare function.

Topics:

Pareto Optimality

- Mathematical evaluation of Pareto optimality (prices, output, preference, & monopolies)
- 'Pareto optimality in the market economy' essay notations

Consumer Surplus

- Mathematical evaluation of consumer surplus (demand curves, consumption, equivalent and compensating variations of price changes)
- Analysis of each measure of consumer surplus: marshallian, equivalent and compensating variation (Willig approximation, quasi-linear, path dependency)

Compensation Tests vs Social Welfare Function

- Kaldor and Hicks Criterion
- pareto improvements
- separation of distribution and efficiency
- Scitovsky paradox and Little-3 part criterion

- social welfare function properties
- arrow's impossibility theorem
- single peaked preferences
- cardinal measurements & equity weighting
- monetary measures of utility