This monograph presents a general equilibrium methodology for microeconomic policy analysis. It is intended to serve as an alternative to the now classical, axiomatic general equilibrium theory as exposited in Debreu`s Theory of Value (1959) or Arrow and Hahn`s General Competitive Analysis (1971).
The methodology proposed in this monograph does not presume the existence of market equilibrium, accepts the inherent indeterminancy of nonparametric general equlibrium models, and offers effective algorithms for computing counterfactual equilibria in these models. It consists of several essays written over the last decade, some with colleagues or former graduate students, and an appendix by Charles Steinhorn on the elements of O-minimal structures, the mathematical framework for our analysis.
Author(s): Professor Donald Brown, Professor Felix Kubler (auth.)
Series: Lecture Notes in Economics and Mathematical Systems 604
Edition: 1
Publisher: Springer-Verlag Berlin Heidelberg
Year: 2008
Language: English
Pages: 204
Tags: Economic Theory; Game Theory/Mathematical Methods; Game Theory, Economics, Social and Behav. Sciences; Operations Research, Mathematical Programming; Computer Appl. in Social and Behavioral Sciences
Front Matter....Pages I-XI
Refutable Theories of Value....Pages 1-10
Testable Restrictions on the Equilibrium Manifold....Pages 11-25
Uniqueness, Stability, and Comparative Statics in Rationalizable Walrasian Markets....Pages 27-39
The Nonparametric Approach to Applied Welfare Analysis....Pages 41-46
Competition, Consumer Welfare, and the Social Cost of Monopoly....Pages 47-68
Two Algorithms for Solving the Walrasian Equilibrium Inequalities....Pages 69-77
Is Intertemporal Choice Theory Testable?....Pages 79-91
Observable Restrictions of General Equilibrium Models with Financial Markets....Pages 93-108
Approximate Generalizations and Computational Experiments....Pages 109-133
Approximate Versus Exact Equilibria in Dynamic Economies....Pages 135-163
Tame Topology and O -Minimal Structures....Pages 165-191
Back Matter....Pages 193-202
