These elementary states may be determined by simplified computational relations using the equilibrium theory
with added inertial terms.
In 1972, he and Kenneth Arrow were awarded a Nobel Prize in economics "for their contribution to general equilibrium theory
and welfare theory.
The recursive competitive equilibrium theory
, in which the equilibrium is depicted as a set of stochastic processes with stationary transition probabilities, is the key development that has led to the revolution in macroeconomics, as Prescott (2006) states.
Tieben largely agrees with McCloskey's rhetorical view of economics and her opinion that mathematical equilibrium theory
not only leads to "an erroneous history of economic thought" (p.
It was also said that this strategy seems to defy the Nash equilibrium theory
, named after the American mathematician John Forbes Nash, Jr.
Schwalbe's work focuses primarily on microeconomics, with particular emphasis on general equilibrium theory
, game theory, industrial organization, and competition theory and policy.
The history is framed by the punctuated equilibrium theory
of policy reform.
He explains the link between general equilibrium theory
with CGE models and features related to CGE models (behavioral equations and calibration).
He cites numerous other examples where good data falsifies the application of equilibrium theory
to environmental problems.
The difficulty has been resolved by dropping industrial analysis and retaining the static equilibrium theory
of the individual business.
In Mill, we get a sense of the development of basic equilibrium theory
, with prices determined by the interaction of supply and demand.
5) The competition-induced technological progress that results in economic growth is inconsistent with the kind of competition that is described by the neoclassical, static equilibrium theory
of "perfect" competition.