(Warning: to go to page 3 go to the bottom of these lines, to SUBPAGES just before the list of files.)
This page contains provisional drafts of the chapter of an advanced microeconomics textbook I have written . The title is Microeconomics For the Critical Mind. This provisional draft is rendered obsolete by the final version that has come out with Springer in May 2021, improved in many aspects, but if you have serious economic problems and cannot get the book, the files here can give you some idea of the contents. If you want to get the book, the web page where you can buy it is indicated at the beginning of the HOME page.
Because of space problems, the published version does not include a file of ERRATA nor an INDEX file; I have prepared these files myself and they are available below (the ERRATA file of course will be periodically updated).
Chapter 0 contains a Preface that explains the philosophy of this textbook. It aims at supplying a perspective on microeconomics open to the recent advances in the theories of value, capital and distribution, that have pointed out grave deficiencies in the neoclassical approach and have suggested a resumption of the classical approach, coupled with a Keynesian role for aggregate demand in the determination of aggregate output, employment and growth. The neoclassical approach is presented too, with its problems pointed out, but one also finds an introduction to the approach to value and distribution of Smith, Ricardo and Marx, an introduction to the theory of long-period prices, an introduction to the different theories of income distribution. For the moment these drafts almost completely lack exercises.
I will be glad to receive comments and suggestions and proposed exercises on all chapters, please send them to fabio.petri@unisi.it . I will prepare a file MicroecsCritic COMMENTS where I will report the comments, criticisms, suggestions I will receive, with answers if opportune.
A more synthetic presentation of the main ideas of the unconventional treatment of general equilibrium presented here in chs. from 4 to 8 is contained in the files GELectures and in the file PetriWhatCapitalTheoryCanTeachPisa, on page 1 of this site.
The chapters are as follows:
0 contents and preface
1 surplus approach. Smith Ricardo Marx
2 an initial formal approach to classical economics. Perron-Frobenius theorem, long-period prices, choice of techniques, reswitching, fixed capital
3 intro to marginalist (neoclassical) theory. Direct and indirect substitution. First Welfare Theorem for simple production economies. Comparison with classical approach on role of intensive rent theory.
4 neoclassical consumer theory, and pure exchange general equilibrium
5 neoclassical firm theory, partial equilibrium, and general equilibrium with production; household production
6 existence uniqueness stability of acapitalistic general equilibrium
7 capital and investment: long period general equilibrium, Cambridge debates, Walras
8 intertemporal equilibrium, overlapping generations, temporary equilibrium
9 uncertainty; expected utility; insurance; general equilibrium with contingent commodities
10 back to the classics: gravitation, joint production, quantities produced, rent
11 intro to game theory (to be completed)
12 product markets: imperfect competition, degree of utilization, investment
13 labour markets and income distribution, with elements of principal-agent theory and bargaining theory
14 welfare economics, externalities, public goods, cost-benefit analysis, happiness
all chapters except ch 11 have online appendices, whose provisional versions appear below as files with 'website' at the end of their name