General Equilibrium

The theory of general equilibrium provides a simplified guide to how real economies function, describing how price, demand, supply, and production interact in multiple markets and tend towards a state of equilibrium. Yves Balasko's book offers an accessible introduction to the theory and its most important developments, including the two theorems of welfare economics and a new proof of the existence of an equilibrium. It is written for students taking courses in economic theory and modelling with limited mathematical proficiency and fills a gap between technical expositions and elementary ones.

Format: Hardback
Length: 176 pages
Publication date: 21 December 2020
Publisher: Agenda Publishing

The theory of general equilibrium provides a concise framework for understanding how real economies operate. It outlines the intricate interplay between price, demand, supply, and production across various markets, ultimately striving for a state of equilibrium. While the concept of general equilibrium was initially explored in the late 19th century, it remained largely theoretical until the advent of the computer age, when vast amounts of data could be processed to model national economies on an unprecedented scale.

Yves Balasko, a prominent figure in this field, offers an accessible introduction to general equilibrium theory and its significant advancements over the past fifty years. The book begins with a historical overview of general equilibrium theory, encompassing the two theorems of welfare economics and presenting a novel proof of equilibrium existence. The central chapters delve into the key results obtained through the equilibrium manifold and natural projection approach, providing a comprehensive understanding of the theory. The final chapter explores the potential of extending the general equilibrium model beyond the market economy by incorporating uncertainty and contingent commodities.

This book is specifically designed for students enrolled in courses in economic theory and modeling who possess a moderate level of mathematical proficiency. It bridges the gap between rigorous technical expositions and less rigorous elementary ones, catering to a diverse audience. As a masterful summation of developments in equilibrium theory by one of the field's leading figures, it will also be warmly embraced by economists engaged in applied and computable general equilibrium analysis.

Weight: 396g
Dimension: 161 x 240 x 19 (mm)
ISBN-13: 9781788210409