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This book deals with one of the most puzzling concepts in economic science, that of economic equilibrium. In modern economics, equilibrium is considered a key assumption, but its role is contested by economists both from within the mainstream and from rival schools of thought. What explains the contradictory assessments of the equilibrium concept in economics? Do economists belonging to different traditions disagree about the definition of equilibrium or do they adopt different rules for assessing scientific status? In this unique and exhaustive study, Bert Tieben answers these questions by investigating the history of equilibrium economics from 1700 to the present day. He concludes that ideology strongly coloured the development of this branch of theory, helping to explain the vehemence of the debates surrounding the concept. He also argues that scientific progress in economics may indeed be fostered by such opposition and contention, and calls for cross fertilization and stronger cooperation between the different schools of thought.

An updated look at what Fischer Black's ideas on business cycles and equilibrium mean today. Throughout his career, Fischer Black described a view of business fluctuations based on the idea that a well-developed economy will be continually in equilibrium. In the essays that constitute this book, which is one of only two books Black ever wrote, he explores this idea thoroughly and reaches some surprising conclusions. With the newfound popularity of quantitative finance and risk management, the work of Fischer Black has garnered much attention. Business Cycles and Equilibrium -with its theory th.

This book addresses the gaps in undergraduate teaching of partial equilibrium analysis, providing a general equilibrium viewpoint to illustrate the assumptions underlying partial equilibrium welfare analysis. It remains unexplained, at least at the level of general economics teaching, in what sense partial equilibrium analysis is indeed a part of general equilibrium analysis. Partial equilibrium welfare analysis isolates a market for a single commodity from the rest of the economy, presuming that other things remain equal, and measures gains and losses by means of consumer surplus. This is a money metric that is supposed to be summable across individuals, recommending policy that maximizes the social surplus. But what justifies such apparently uni-dimensional practise? Within a general equilibrium framework, the assumption of no income effect is presented as the key condition, and substantive general equilibrium situations in which the condition emerges are presented. The analysis is extended to the case of uncertainty, in which the practice adopts aggregate expected consumer surplus, and scrutinizes when such practice is justified. Finally, the book illustrates partial equilibrium as an institutional artifact, meaning that institutional constraint induces individuals to behave as if they are in partial equilibrium. This volume forms an important contribution to the literature by researching why this disparity persists and the implications for economics education.

1. Walras : pioneer of illuminating complexity / William J. Baumol -- 2. Leon Walras and monetary economics / David Laidler -- 3. The normative origins of general equilibrium theory, or, Walras's attempts at reconciling economic efficiency with social justice / Pascal Bridel -- 4. Walras, Keynes, and the 'Great Recession' / Richard A. Posner -- 5. The stability of general equilibrium : what do we know and why is it important? / Franklin M Fisher -- 6. The computation of equilibria for the Walrasian model : a personal account / Herbert E. Scarf -- 7. Walras, non clearing markets and imperfect competition / Jean-Pascal Benassy -- 8. General equilibrium theory and public finance / Anthony B. Atkinson -- 9. Macroeconomics and the uses of general equilibrium / Robert M. Solow -- 10. Credit instruments and information in general equilibrium / Kenneth J. Arrow -- 11. Walras's unfortunate legacy / Alan Kirman -- 12. On the modernity of Walras / Roger Guesnerie.

Intro -- Contents -- Introduction -- 1 Lionel W. McKenzie -- 2 Equilibrium, Trade, and Capital Accumulation -- Equilibrium -- 3 On Equilibrium in Graham's Model of World Trade and Other Competitive Systems -- 4 Competitive Equilibrium with Dependent Consumer Preferences -- 5 Demand Theory without a Utility Index -- 6 On the Existence of General Equilibrium for a Competitive Market -- 7 Stability of Equilibrium and the Value of Positive Excess Demand -- 8 On the Existence of General Equilibrium: Some Corrections -- 9 Why Compute Economic Equilibria? -- 10 The Classical Theorem on Existence of Competitive Equilibrium -- 11 The Existence of Competitive Equilibrium over an Infinite Horizon with Production and General Consumption Sets -- Trade -- 12 Specialisation and Efficiency in World Production -- 13 Equality of Factor Prices in World Trade -- 14 Specialization in Production and the Production Possibility Locus -- 15 Matrices with Dominant Diagonals and Economic Theory -- 16 The Inversion of Cost Functions: A Counter-Example -- 17 Theorem and Counter-Example -- Growth -- 18 The Dorfman-Samuelson-Solow Turnpike Theorem -- 19 Turnpike Theorem of Morishima -- 20 Accumulation Programs of Maximum Utility and the von Neumann Facet -- 21 Capital Accumulation Optimal in the Final State -- 22 Turnpike Theorems with Technology and Welfare Function Variable -- 23 A New Route to the Turnpike -- 24 A Primal Route to the Turnpike and Liapounov Stability -- 25 Turnpike Theory, Discounted Utility, and the von Neumann Facet -- Sources -- Index.

Equilibrium models play a central role in modern (micro)economic analysis.
They form the basis of almost all our understanding in economics and are
increasingly being used in other fields of social science. Yet there are
numerous limitations to the equilibrium approach. To name a few: the
treatment of time, i.e., the problem of distinguishing between ?time in
models? and ?models in time?; learning process, i.e., the problem of
knowledge necessary to attain the equilibrium; equilibrium dynamics, i.e.
considering the equilibrium attainment process and not just the equilibrium
state. Many critics already drew attention to the reach and limitations of
the ?engineering approach? in economic science. It seems that the ?voice of
reason? has never been loud enough. This paper presents a review of the
above-mentioned problems.