The Equilibrium Economics of Leon Walras (Hardcover)

Does Walras' theory extend beyond free competition? Literature on Walras has focused on his "Elements of pure economics". While this is partly due to the value the economist himself attached to his study, it has tended to present a rather unbalanced view of his life's work. In "The Equilibrium Economics of Leon Walras, Van Daal and Jolink trace the development of Walras' consecutive models of general equilibrium through the five editions of his "Elements". However, the authors also even-up the overall impression of Walras' work by placing his equilibrium exercises in a much broader prespective and arguing that these models should be considered as an instrument in Walras' design for optimal economic order. The book falls into three distinct sections. Part 1 deals with some aspects of Walras' theory - the use of mathematics in economics, the notion of free competition, the notion of utility, and price formation in competitive markets. In Part 2, these aspects are synthesized in the equilibrium models. Part 3 outlines Walras' views on what he called the "social question", and how it led him to formulate regulations with respect to monopoly.