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Equilibrium Models in Economics
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Equilibrium Models in Economics: Purposes and Critical Limitations

Lawrence A. Boland

Abstract

Equilibrium models used in beginning economics classes are based on the equilibrium concept developed by Alfred Marshall, but that concept of an equilibrium does not correspond to the equilibrium concept recognized in modern formal mathematical models taught to graduate students. In both cases, the assumptions needed to produce explanations of economic events are open to question. The assumptions needed to prove the existence of an equilibrium in formal mathematical models are often questioned not only by older model builders but also by today’s formal model builders. This book critically exam ... More

Keywords: equilibrium models, learning vs. knowledge, rational expectations, equilibrium price, disequilibrium dynamics, DSGE models, complexity and path-dependency, evolutionary models, Kenneth Arrow, Robert Clower, George Richardson, Friedrich Hayek

Bibliographic Information

Print publication date: 2017 Print ISBN-13: 9780190274320
Published to Oxford Scholarship Online: May 2017 DOI:10.1093/acprof:oso/9780190274320.001.0001

Authors

Affiliations are at time of print publication.

Lawrence A. Boland, author
Emeritus Professor of Economics, Simon Fraser University

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