Computing Equilibrium in Financial Theory - Lecture 3

Dive into a comprehensive lecture on computing equilibrium in financial theory. Explore how economic decisions of every agent in the economy can be explained through tangible examples. Learn to calculate equilibrium prices and allocations in a simple economy, both manually and using computer models. Discover the application of welfare and utility concepts in free markets, and understand how equilibrium is achieved amidst consumption and endowments. Examine the role of price anticipation in economic decision-making. Delve into log utilities and their use in computer models of equilibrium. This 75-minute lecture, part of Yale University's Financial Theory course, provides a foundation for understanding more complex financial economies involving stocks, bonds, and other assets.

- Chapter 1. Introduction
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- Chapter 2. Welfare and Utility in Free Markets
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- Chapter 3. Equilibrium amidst Consumption and Endowments
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- Chapter 4. Anticipation of Prices
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- Chapter 5. Log Utilities and Computer Models of Equilibrium
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