Back نظرية التوازن العام Arabic Ümumi müvazinət Azerbaijani Теория за общото икономическо равновесие Bulgarian Teoria de l'equilibri general Catalan Allgemeines Gleichgewichtsmodell German Θεωρία γενικής ισορροπίας Greek Teoría del equilibrio general Spanish Oreka orokorraren teoria Basque نظریه تعادل عمومی Persian Équilibre général French
| Part of the behavioral sciences |
| Economics |
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In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium. General equilibrium theory contrasts with the theory of partial equilibrium, which analyzes a specific part of an economy while its other factors are held constant.[1]
General equilibrium theory both studies economies using the model of equilibrium pricing and seeks to determine in which circumstances the assumptions of general equilibrium will hold. The theory dates to the 1870s, particularly the work of French economist Léon Walras in his pioneering 1874 work Elements of Pure Economics.[2] The theory reached its modern form with the work of Lionel W. McKenzie (Walrasian theory), Kenneth Arrow and Gérard Debreu (Hicksian theory) in the 1950s.
- ^ McKenzie, Lionel W. (2008). "General Equilibrium". The New Palgrave Dictionary of Economics. pp. 1–27. doi:10.1057/978-1-349-95121-5_933-2. ISBN 978-1-349-95121-5.
- ^ Walras, Léon (1954) [1877]. Elements of Pure Economics. Irwin. ISBN 978-0-678-06028-5. Scroll to chapter-preview links.