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Classical General Equilibrium Theory : The MIT Press - Lionel W. McKenzie

Classical General Equilibrium Theory

The MIT Press


Published: 1st September 2005
For Ages: 18+ years old
Ships: 3 to 4 business days
3 to 4 business days
RRP $55.99

Although general equilibrium theory originated in the late nineteenth century, modern elaboration and development of the theory began only in the 1930s and 1940s. This book focuses on the version of the theory developed in the second half of the twentieth century, referred to by Lionel McKenzie as the classical general equilibrium theory. McKenzie offers detailed and rigorous treatment of the classical model, giving step-by-step proofs of the basic theorems. In many cases he elaborates on the individual steps to give a fuller understanding of the underlying principles. His goal is to provide readers with a true mastery of the methodology so that they can derive new results that will further enrich their thinking about general equilibrium theory. Special attention is given to the McKenzie model, in which it is not assumed that the number of firms is given but rather that technologies or activities are available to any agents who can supply the resources they require. The McKenzie model is used to establish the turnpike theorems of optimal and competitive capital accumulation.

"A beautifully written, integrated treatment of the main topics in microeconomics, this book takes the reader from first principles to the cutting edge of theory today. It is, and will remain, a classic work."--Jerry Green, John Leverett Professor in the University and David A. Wells Professor of Political Economy, Harvard University "Lionel McKenzie's new monograph is a pleasure to read. Only a major contributor to economic theory could teach general equilibrium theory with such clarity and authority. The book is gracefully written and rigorous, and does an elegant job of situating competitive equilibrium theory in the economic and mathematical traditions from which it evolved." Robert E. Lucas, Jr. , John Dewey Distinguished Service Professor, University of Chicago "This book is a masterwork by one of the three founders of the modern field of general equilibrium theory. All economists will want to own this volume. It covers not only classical theory but also the research frontier. It is written with the beauty and clarity that one would expect of a founding father." William A. Brock , Vilas Research Professor of Economics, The University of Wisconsin, Madison "This book is itself a modern classic. It summarizes deftly, succinctly, and elegantly four decades of vintage frontier findings by two score top academics. McKenzie himself is first among equals in this stellar group." Paul A. Samuelson , Institute Professor Emeritus, Massachusetts Institute of Technology, and Nobel Laureate in Economics (1970) "Over a period of fifty years McKenzie has pioneered, organized, and taught general equilibrium. This volume, by a master of the subject, serves as an indispensable guide to rigorous general equilibrium. The serious reader will be amply rewarded."--Hugo Sonnenschein, Charles L. Hutchinson Distinguished Service Professor and President Emeritus, University of Chicago

Prefacep. xi
Theory of Demandp. 1
A Direct Approach to Demand Theoryp. 1
Demand Theory without Transitivityp. 13
The Classical Theoryp. 15
The Method of Revealed Preferencep. 22
Market Demand Functionsp. 25
Continuity of m[subscript x](p)p. 33
Negative Semidefiniteness of [m subscript ij (p)]p. 34
Euler's Theorem for f(p)p. 35
Quasi-linear Preferencesp. 35
The Law of Demand and Risk Aversionp. 36
The Strong Axiom of Revealed Preferencep. 38
Group Demand Functionsp. 40
Tatonnement Stability of Equilibriump. 45
Excess Demand Functionsp. 45
Market Equilibriump. 50
Matrices with Quasi-dominant Diagonalsp. 50
The Process of Tatonnementp. 52
Local Stability of the Tatonnementp. 54
Tatonnement with Expectationsp. 64
An Economy of Firmsp. 69
An Economy of Activitiesp. 77
Tatonnment with Tradingp. 82
Global Stability with Gross Substitutesp. 89
Individual and Market Excess Demand Functionsp. 96
The Gross Substitute Assumptionp. 98
The Weak Axiom of Revealed Preference and Local Stabilityp. 102
Stability in a Temporary Equilibrium Modelp. 104
Leontief Models of Productionp. 109
The Simple Leontief Modelp. 109
A Simple Leontief Model of Growthp. 114
The Simple Model with Variable Coefficientsp. 118
Nonsubstitution with Capital Stocksp. 122
Current Prices and Interest Ratesp. 129
Continuity of [mu subscript A](s)p. 129
Comparative Staticsp. 133
The Local Theory of Comparative Staticsp. 133
The Morishima Casep. 140
Global Comparative Staticsp. 143
Comparative Statics for the Individual Agentp. 145
Comparative Statics and Supermodularityp. 150
Local Uniqueness of Equilibriump. 153
Jacobi's Theoremp. 157
Negative Definiteness under Constraintp. 158
Maximization under Constraintp. 161
Matrices Whose Roots Have Negative Real Partsp. 163
Pareto Optimality and the Corep. 165
Pareto Optimum and Competitive Equilibriump. 165
Competitive Equilibrium and the Corep. 171
Nonemptiness of the Corep. 181
The Existence of Competitive Equilibriump. 183
Existence and Uniqueness of Competitive Equilibriump. 189
Existence in an Economy of Activitiesp. 189
Existence in an Economy of Firmsp. 197
Interiority and Irreducibilityp. 207
Existence of Competitive Equilibrium with an Infinite Commodity Spacep. 214
Uniqueness of Equilibriump. 229
Existence of a Zero of the Excess Demand Functionsp. 235
Competitive Equilibrium over Timep. 239
The von Neumann Modelp. 240
Turnpike Theorems for the von Neumann Modelp. 244
A Generalized Ramsey Growth Modelp. 248
Turnpike Theorems over an Infinite Horizonp. 255
The Generalized Ramsey Model with Discountingp. 259
A Turnpike Theorem for the Quasi-stationary Modelp. 264
The Turnpike in Competitive Equilibriump. 272
A Leontief Model with Capital Coefficients as a von Neumann Modelp. 293
Referencesp. 301
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9780262633307
ISBN-10: 0262633302
Series: The MIT Press
Audience: Professional
For Ages: 18+ years old
Format: Paperback
Language: English
Number Of Pages: 332
Published: 1st September 2005
Publisher: MIT Press Ltd
Country of Publication: US
Dimensions (cm): 22.9 x 15.2  x 1.5
Weight (kg): 0.43