General Equilibrium Analysis and the Theory of Markets

Arguing that the Walrasian general equilibrium approach cannot account for the behavior of the economy at a microeconomic level, Costa (economics, U. of Porto, Portugal) provides a detailed historical examination of general equilibrium analysis and its theoretical and empirical limitations. In response to his question of how elusive is a general model of decentralized exchange, the author responds that while thinking in economics remains clouded by the "confusion produced by the neowalrasian diversion," Walker, Clower and Friedman, et al. offer glimmers of hope. Includes extensive references and notes on the literature. Originated from a dissertation (institution, date unspecified). Annotation c. Book News, Inc., Portland, OR (booknews.com)