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The Current Non-Status of General Equilibrium Theory

Author

Listed:
  • Donald W. Katzner

    (University of Massachusetts Amherst)

Abstract

This paper argues that the abandonment of general equilibrium theory by microeconomists was a mistake. It provides counter arguments to two of the reasons for that abandonment — lack of both generality and consistency with methodological individualism in uniqueness and stability analysis of equilibria — and urges microeconomists to refocus some of their attention on it.

Suggested Citation

  • Donald W. Katzner, 2004. "The Current Non-Status of General Equilibrium Theory," UMASS Amherst Economics Working Papers 2004-10, University of Massachusetts Amherst, Department of Economics, revised Aug 2005.
    • Handle: RePEc:ums:papers:2004-10
    as

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    File URL: http://www.umass.edu/economics/publications/2004-10.pdf
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    References listed on IDEAS

    as
    1. Mantel, Rolf R., 1974. "On the characterization of aggregate excess demand," Journal of Economic Theory, Elsevier, vol. 7(3), pages 348-353, March.
    2. Smale, Stephen, 1976. "Exchange processes with price adjustment," Journal of Mathematical Economics, Elsevier, vol. 3(3), pages 211-226, December.
    3. Kirman, Alan, 1989. "The Intrinsic Limits of Modern Economic Theory: The Emperor Has No Clothes," Economic Journal, Royal Economic Society, vol. 99(395), pages 126-139, Supplemen.
    4. Franklin M. Fisher, 1972. "On Price Adjustment without an Auctioneer," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 39(1), pages 1-15.
    5. Benassy, Jean-Pascal, 1993. "Nonclearing Markets: Microeconomic Concepts and Macroeconomic Applications," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 732-761, June.
    6. Debreu, Gerard, 1974. "Excess demand functions," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 15-21, March.
    7. Sonnenschein, Hugo, 1972. "Market Excess Demand Functions," Econometrica, Econometric Society, vol. 40(3), pages 549-563, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    general equilibrium theory; price determination; methodological individualism.;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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