Marshallvs. Walras on Equilibrium and Disequilibrium
| Autor: | Franco Donzelli |
|---|---|
| Rok vydání: | 2008 |
| Předmět: |
Generality
General equilibrium theory 060106 history of social sciences Existential quantification Partial equilibrium 05 social sciences Disequilibrium 06 humanities and the arts Presupposition Walras' law 0502 economics and business medicine Economics 0601 history and archaeology Observability 050207 economics medicine.symptom Mathematical economics |
| Zdroj: | History of Economics Review. 48:1-38 |
| ISSN: | 1838-6318 1037-0196 |
| DOI: | 10.1080/18386318.2008.11682129 |
| Popis: | In this paper I critically analyse the view that John Hicks sought to establish, according to which Walras’ and Marshall’s approaches to price theory, while differing in scope (that is, general vs. partial analysis), are basically similar in their aims, presuppositions and results. By focusing on a special kind of economy (the pure-exchange, two-commodity economy), which has been formally studied by both economists with the help of similar tools, we can precisely identify the differences between the two approaches. In particular, I am able to prove that there exists a definite trade-off between observability of the disequilibrium process and generality of the equilibrium concept: for Marshall can succeed in modelling a process of exchange in ‘real’ time with observable out-of-equilibrium trades only at the cost of confining his analysis to a partial equilibrium framework; whereas Walras can succeed in developing a truly general equilibrium model only at the cost of accepting that the underlying equilibrat... |
| Databáze: | OpenAIRE |
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