Maskin and Roberts on General Equilibrium
June 14th, 2007 by WaltI was doing some more reading on general equilibrium, when I came across On the Fundamental Theorems of General Equilibrium by Maskin and Roberts, which gives a succinct proof of the existence of general equilibrium, as well as the two subsidiary results known as the first and second welfare theorems. It’s particuarly good in spelling out the mathematical relationship between the different results. (Be warned, though. It’s completely unintelligible if you don’t have a separate description of the model handy, though.)
I found the paper via this post by Michael Greinecker on his weblog Yet Another Sheep.
June 15th, 2007 at 1:36 pm
A slightly more intelligible reference for the model can be found among the notes on mathematics and mathematical economics by Kim Border. The relevant piece is the Introduction to the Arrow–Debreu–McKenzie–Nikaidô Model.
June 18th, 2007 at 1:59 am
key phrase is of course “under appropriate hypotheses”
Never mind those hypotheses are as far removed from reality as is a mirage from water