The notion of solution plays a crucial role in the conceptual system of Léon Walras, the founder of General Equilibrium Theory (GET). In this paper, after introducing the two solution concepts employed by Walras in the development of his version of GET, respectively called the “theoretical”...

Equilibrium, disequilibrium and time in Walras’ economics.Walras’ theory of general economic equilibrium undergoes deep changes over the twenty-six years elapsing from the date when Walras’ first significant theoretical contribution is published (1874) and the date when the fourth edition...

Assume that government maximizes the well being of its citizens subject to technological, political, and informational constraints. How should equilibrium be perturbed so that equilibrium post-perturbation quantities satisfy new exogenously-specified bounds? We prove an intervention principle...

The process of economic and political transition from central planning to market economy involves a profound transformation of the way the resources are allocated in the economy. In these circumstances, economists need to find ways to assess and compare the transition impact of investment...

This paper focuses on the practical use of cost-benefit analysis (or, more generally, of monetary valuation and other decision-making tools) in environmental policymaking. Based on a questionnaire sent to Environmental Ministries of OECD member countries, a review of the use of such analysis in...

The presentation will discuss the economic meaning of the concept of the Value of a Statistical Life (VSL) and review some of its properties. In particular, the age pattern of the VSL is considered. The presentation will also review recent estimates of the magnitude of a VSL taken from different...

In relation to social project appraisal in EU countries, governments should try to agree on a single generally preferred method of discounting. Consistency of approach should result in the application of similar discount rates by countries. Before 2003, the use of different methods resulted in...

The assessment of the technical, economic and financial quality of programmes and projects is one of the day-to-day activities at the European Investment Bank (EIB). The paper explains how this task is approached within the EIB, how some of the tools of cost-benefit analysis are employed, and...

Application of the social discount rate to public sector projects is one of the most crucial parameters in cost benefit analysis. Because of its importance some countries have a formal discount rate and method of discounting policies. The United Kingdom was one of the earliest to adopt a policy...

Pareto welfare criterion based on people’s willingness to pay for a project’s output is regarded by many as a narrow interpretation of improvement in social well-being. A broader opinion is that even though poorer individuals may be less able to pay for a particular benefit, they may obtain...