Have General Equilibrium Models Successfully Formulated the Notion of Invisible hand:a Completeness Requirement
This paper examines how general equilibrium models (GEMs) are constructed to formulate the notion of invisible hand and whether this theoretical mission has been successfully executed in the existing GEMs.One of the most fundamental motivations of general equilibrium theory is to provide arigorous formulation of the invisible hand.To do so, economists have constructed various GEMs.Each GEM is a model world consisting basically of three elements: the environmeng the mechanism, and the optimality criterion.The invisible hand metaphor is translated into a proposition that in each environment, the mechanism can finalize a resource allocation that satisfies the given optimality criterion.A scientifically tractable GEM must be able to either verify or falsify this proposition in its analytical framework.Such a fundamental requirement, called ”completeness,” however, may not be satisfied—and even not required--by the infra-marginal analysis, a nascent GEM that has been introduced in 1990s in the economic literature.
Invisible Hand Pareto-Walrasian tradition Pareto Criterion Infra-Marginal analysis (new classical economics) Optimality criterion
Haiou Zhou
Department of Economics, Jiangxi University of Finance and Economics South Lushan Road, Xialuo, Nanchang City, Jiangxi Province, 330013, China
国内会议
南昌
英文
363-376
2013-11-14（万方平台首次上网日期，不代表论文的发表时间）