Still dead after all these years: interpreting the failure of general equilibrium theory

  title={Still dead after all these years: interpreting the failure of general equilibrium theory},
  author={Frank. Ackerman},
  journal={Journal of Economic Methodology},
  pages={119 - 139}
  • F. Ackerman
  • Published 1 January 2002
  • Economics
  • Journal of Economic Methodology
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… 

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