Despite being an intrinsic part of modern economic theory, there is no single definition or unifying principle underlying the various uses of the concept of economic equilibrium. A pragmatic view is to treat it as ''a method of solving economic models'' or ''a solution to a set of equations.'' This course argues that mainstream and more heterodox traditions are best distinguished not according to substantive claims or policy stances but rather precisely in terms of their ontological commitments, a journey that begins with the very notion of equilibrium. To this end, the course will introduce students to cutting-edge heterodox approaches to research, emphasising its worldview of the socioeconomic system as intrinsically unstable. The first module introduces topics in evolutionary game theory, including applications of principal-agent problems to labour and credit markets. The second module deals with models of growth and distribution, introducing students to thegrowth cycle literature in closed and open economies.
Apply basic concepts of evolutionary game theory to institutional design, coordination problems, public goods, and externalities.
Present principal-agent applications to labour markets and credit markets.
Provide a comprehensive understanding of growth and distribution models from a disequilibrium angle.
Discuss critiques, alternatives and syntheses.