The Rise and Fall of Walras's Demand and Supply Curves.
Walras is famous for his indication of how, in principle, demand curves can be derived from utility maximization. However, it is seldom recognized that Walras did not have partial equilibrium demand curves in mind. Instead, he concentrated on the context of exchange. The 'general equilibrium' demand and supply curves produced by Walras and extended by Launhardt have subsequently been almost entirely 'lost' in the literature, despite their central role in the analysis of exchange. They have been independently rediscovered several times, but the approach has not been systematically developed. This paper examines the derivation of Walras's curves. It is suggested that the approach is potentially very useful, particularly in view of the increased use of nonlinear methods in economics. Copyright 1999 by Blackwell Publishers Ltd and The Victoria University of Manchester
Year of publication: |
1999
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Authors: | Creedy, John |
Published in: |
Manchester School. - School of Economics, ISSN 1463-6786. - Vol. 67.1999, 2, p. 192-202
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Publisher: |
School of Economics |
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