When did Léon Walras publish Elements of Pure Economics?
Léon Walras published Elements of Pure Economics in 1874. This work marked the first serious attempt to model prices for an entire economy simultaneously.
Questions about General equilibrium theory
Short answers, pulled from the story.
Who developed the modern version of general equilibrium theory during the 1950s?
Kenneth Arrow, Gérard Debreu, and Lionel W. McKenzie developed the modern version of general equilibrium theory during the 1950s. Debreu presented this model in Theory of Value published on the 2nd of May 1959.
What does the First Fundamental Welfare Theorem assert about market equilibria?
The First Fundamental Welfare Theorem asserts that market equilibria achieve Pareto efficiency. No reallocation leaves one consumer better off without harming another.
Why did Herbert Scarf pioneer Applied General Equilibrium models in 1967?
Herbert Scarf pioneered Applied General Equilibrium models in 1967 offering numerical solution methods for Arrow-Debreu systems. Advances in computing power combined with input-output tables enabled national world economy modeling attempts solving equilibrium prices quantities empirically.
How do Computable General Equilibrium models differ from AGE frameworks after the mid-1980s?
Computable General Equilibrium models surpassed AGE frameworks by replacing them in the mid-1980s. These models rely on static simultaneously solved macro balancing equations from standard Keynesian models giving precise explicitly computable results.