Journal of Economic Methodology 9 (2):119-139 (2002)
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.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
References found in this work BETA
Citations of this work BETA
No citations found.
Similar books and articles
General Social Equilibrium: Toward Theoretical Synthesis.Thomas J. Fararo - 1993 - Sociological Theory 11 (3):291-313.
Sargent and the Unbearable Lightness of Symmetry.Esther-Mirjam Sent - 1998 - Journal of Economic Methodology 5 (1):93-114.
Practical Equilibrium: A Way of Deciding What to Think About Morality.Ben Eggleston - 2010 - Mind 119 (475):549-584.
History and Equilibrium: A Partial Defense of Equilibrium Economics.Roger E. Backhouse - 2004 - Journal of Economic Methodology 11 (3):291-305.
Probability and Statistics in Boltzmann's Early Papers on Kinetic Theory.Massimiliano Badino - unknown
Stability and Explanatory Significance of Some Simple Evolutionary Models.Brian Skyrms - 2000 - Philosophy of Science 67 (1):94-113.
Game-Theoretic Axioms for Local Rationality and Bounded Knowledge.Gian Aldo Antonelli & Cristina Bicchieri - 1995 - Journal of Logic, Language and Information 4 (2):145-167.
Efficient Social Contracts and Group Selection.Simon Huttegger & Rory Smead - 2011 - Biology and Philosophy 26 (4):517-531.
On the Inconsistency of Equilibrium Refinement.Werner Güth - 2002 - Theory and Decision 53 (4):371-392.
Models in Science.Roman Frigg - 2008 - In Edward N. Zalta (ed.), The Stanford Encyclopedia of Philosophy.
Do Nonlinear Dynamics in Economics Amount to a Kuhnian Paradigm Shift?Mohammed H. I. Dore & J. Barkley Rosser - unknown
Pareto's Theory of Social and Economic Cycles: A Formal Model and Simulation.Charles H. Powers & Robert A. Hanneman - 1983 - Sociological Theory 1:59-89.
Added to index2012-02-20
Total downloads35 ( #143,510 of 2,153,478 )
Recent downloads (6 months)2 ( #280,610 of 2,153,478 )
How can I increase my downloads?