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Elements of neo-Walrasian economics. A survey. (English) Zbl 1309.91004

Advances in Japanese Business and Economics 5. Tokyo: Springer (ISBN 978-4-431-54534-7/hbk; 978-4-431-54535-4/ebook). xi, 192 p. (2014).
This survey of history and contemporary state of general equilibrium theory, which is the core of the mainstream of the modern economic theory, is written by a well-known contributor for the general equilibrium and historian of economic theory. The book envelops standard parts of microeconomics of advanced level such as [H. R. Varian, Microeconomics. Übers. aus dem Engl. von Martin Weigert. München: R. Oldenbourg Verlag (1985; Zbl 0732.90002)]. However, the author intends “to explain the basic structure, rather than recent contributions” of neo-classical economics. The content of most chapters which present mathematical theory of production, consumption, competitive and imperfect equilibrium, optimal allocation of resources, and optimal income distribution, is rather light. But the presentation of history of the origination and developing of the neoclassical paradigm of an independent “economic man” (Chapter 1), as well as the presentation of relation between microeconomics and macroeconomics (Chapter 10), are very instructive. However, the neoclassical paradigm and the program of ‘microfoundations for macroeconomics’ have appeared insolvent concerning actual representation of the market demand and, more general, of collective choice. Such an insolvency is being discussed, particularly, in the fourth chapter of the widely known textbook by A. Mas-Colell et al. [Microeconomic theory. New York, NY: Oxford University Press (1995; Zbl 1256.91002)], in the papers by A. Kirman [“Whom or what does the representative individual represent?”, J. Econ. Perspectives 6, No. 2, 117–136 (1992), http://www.jstor.org/stable/2138411; “The economic crisis is a crisis for economic theory”, CESifo Econ. Stud. 56, No. 4, 498–535 (2010; doi:10.1093/cesifo/ifq017)], by V. Polterovich [“Crisis of economic theory”, Èkon. Nauka Sovrem. Ross. No. 1, 46–66 (1998)], and by the reviewer [Zh. Èkon. Teor. 2009, No. 1, 85–94 (2009; Zbl 1183.91087); Èkon. Nauka Sovrem. Ross. 2013, No. 4, 19–36 (2013; Zbl 1310.91089)]. In the last two papers, the resolution of the market demand problem on the basis of the notion of the statistical ensemble of consumers is suggested. The new approach to demand theory allows one to leave from known lacks of the neo-Walrassian equilibrium theory based on the individualistic model of Arrow-Debreu, and to evidence the earlier equilibrium model of Cassel-Wald as more adequate to the reality.

MSC:

91-01 Introductory exposition (textbooks, tutorial papers, etc.) pertaining to game theory, economics, and finance
91-03 History of game theory, economics, and finance
91B38 Production theory, theory of the firm
91B42 Consumer behavior, demand theory
91B50 General equilibrium theory
91B14 Social choice
91B64 Macroeconomic theory (monetary models, models of taxation)
91B32 Resource and cost allocation (including fair division, apportionment, etc.)
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