Monday, September 5, 2011
On General Equilibrium (GE)
Nice post (and rare, since this kind of topic is often not dealt with) on GE by Alejandro Nadal at TripleCrisis. In my view, the problem is less that equilibrium per se does not exist, as Nadal seems to suggest, but the particular notion of equilibrium that has come dominate economics after Arrow-Debreu and the Capital Debates. I highly recommend the paper by Fabio Petri (here) for those interested on the subject.