This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Still dead after all these years: interpreting the failure of general equilibrium theory

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Frank Ackerman

Additional information is available for the following registered author(s):

Abstract

More than 25 years after the discovery that the equilibrium point of a general equilibrium model is not necessarily either unique or stable, there is still a need for an intuitively comprehensible explanation of the reasons for this discovery. Recent accounts identify two causes of the finding of instability: the inherent difficulties of aggregation, and the individualistic model of consumer behaviour. The mathematical dead end reached by general equilibrium analysis is not due to obscure or esoteric aspects of the model, but rather arises from intentional design features, present in neoclassical theory since its beginnings. Modification of economic theory to overcome these underlying problems will require a new model of consumer choice, nonlinear analyses of social interactions, and recognition of the central role of institutional and social constraints.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://taylorandfrancis.metapress.com/link.asp?target=contribution&id=56LC75AC1TVWPWUW
File Format: text/html
File Function:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of Economic Methodology.

Volume (Year): 9 (2002)
Issue (Month): 2 (June)
Pages: 119-139
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:taf:jecmet:v:9:y:2002:i:2:p:119-139

Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=104715

Order Information:
Web: http://www.tandf.co.uk/journals/subscription.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: General Equilibrium Theory; Instability; Sonnenschein-MANTEL-DEBREU Theorem; Mathematical Modelling; Economics And Physics; Mirowski;

Other versions of this item:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-70, Summer. [Downloadable!] (restricted)
  2. Arrow, Kenneth J, 1986. "Rationality of Self and Others in an Economic System," Journal of Business, University of Chicago Press, vol. 59(4), pages S385-99, October. [Downloadable!] (restricted)
  3. Louis Putterman & John E. Roemer & Joaquim Silvestre, 1998. "Does Egalitarianism Have a Future?," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 861-902, June. [Downloadable!] (restricted)
    Other versions:
  4. Rizvi, S Abu Turab, 1994. "The Microfoundations Project in General Equilibrium Theory," Cambridge Journal of Economics, Oxford University Press, vol. 18(4), pages 357-77, August.
  5. Saari, Donald G, 1985. "Iterative Price Mechanisms," Econometrica, Econometric Society, vol. 53(5), pages 1117-31, September. [Downloadable!] (restricted)
  6. Smale, Steve, 1976. "A convergent process of price adjustment and global newton methods," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 107-120, July. [Downloadable!] (restricted)
  7. Saari, Donald G, 1992. "The Aggregated Excess Demand Function and Other Aggregation Procedures," Economic Theory, Springer, vol. 2(3), pages 359-88, July.
  8. Sonnenschein, Hugo, 1972. "Market Excess Demand Functions," Econometrica, Econometric Society, vol. 40(3), pages 549-63, May. [Downloadable!] (restricted)
  9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132. [Downloadable!] (restricted)
  10. Kirman, Alan, 1989. "The Intrinsic Limits of Modern Economic Theory: The Emperor Has No Clothes," Economic Journal, Royal Economic Society, vol. 99(395), pages 126-39, Supplemen. [Downloadable!] (restricted)
  11. Arthur Lewbel, 1994. "An Examination of Werner Hildenbrand's Market Demand," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1832-1841, December. [Downloadable!] (restricted)
  12. Kirman, Alan P, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-36, Spring. [Downloadable!] (restricted)
  13. Kirman, A P & Koch, K J, 1986. "Market Excess Demand in Exchange Economies with Identical Preferences and Collinear Endowments," Review of Economic Studies, Blackwell Publishing, vol. 53(3), pages 457-63, July. [Downloadable!] (restricted)
  14. Herbert E. Scarf, 1959. "Some Examples of Global Instability of the Competitive Equilibrium," Cowles Foundation Discussion Papers 79, Cowles Foundation, Yale University. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Frank Ackerman & Kevin Gallagher, 2001. "Getting the Prices Wrong: The Limits of Market-Based Environmental Policy," Development and Comp Systems 0106005, EconWPA. [Downloadable!]
  2. Frank Ackerman & Kevin Gallagher, 2001. "Trade Liberalization and Pollution Intensive Industries in Developing Countries: A Partial Equilibrium Approach," International Trade 0106004, EconWPA. [Downloadable!]
  3. Frank Ackerman & Kevin Gallagher, . "00-03 "Trade Liberalization and Pollution Intensive Industries in Developing Countries: A Partial Equilibrium Approach."," GDAE Working Papers 00-03, GDAE, Tufts University. [Downloadable!]
  4. Massimo Cingolani, 2008. "Full Employment as a Possible Objective for EU Policy I. A Perspective From the Point of View of The Monetary Circuit," Working Papers 200814, Faculty of economics, Department of Economics, revised Mar 2008. [Downloadable!]
  5. Serban Scrieciu & Lindsay C Stringer, 2007. "Farmers’ The Transformation of Post-Communist Societies in Central and Eastern Europe and the Former Soviet Union: An Economic and Ecological Sustainability Perspective," Environmental Economy and Policy Research Working Papers 25.2007, University of Cambridge, Department of Land Economics, revised 2007. [Downloadable!]
  6. Frank Ackerman, . "05-01 "The Shrinking Gains from Trade: A Critical Assessment of Doha Round Projections"," GDAE Working Papers 05-01, GDAE, Tufts University. [Downloadable!]
  7. Kevin P. Gallagher & Frank Ackerman & Luke Ney, . "02-01 "Economic Analysis in Environmental Reviews of Trade Agreements: Assessing the North American Experience"," GDAE Working Papers 02-01, GDAE, Tufts University. [Downloadable!]
Statistics
Access and download statistics

Did you know? You too can volunteer with RePEc.

This page was last updated on 2009-11-14.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.