Equilibrium in Economics: Scope and Limits (Routledge Frontiers of Political Economy)

General Equilibrium Theory, which became the dominating paradigm after the Second World War, is founded on the postulated existence, uniqueness, and stability of equilibrium in economic processes. Since then, the concept has come under sustained attack from all points of the heterodox compass, from Austrian economists to Marxists. Partly in response to these pressures, mainstream economics has changed and moved away from the rigid framework of GET. Nonetheless, economists are continually arguing in terms of equilibrium and the existence of a variety of equilibrium concepts continues to stir controversy. The contributions in this book, which include articles from Tony Lawson, Ivor Grattan-Guinness and Roger Backhouse, highlight current notions of equilibrium in economics and provide a guide to understanding the links between economic theory and economic reality. Book Cover......Page 1 Title......Page 12 Copyright......Page 13 Dedication......Page 14 Contents......Page 16 Illustrations......Page 18 Contributors......Page 19 Foreword......Page 22 Preface......Page 25 Acknowledgements......Page 26 Introduction: Three ways of looking at economic equilibrium......Page 28 Part I: The interplay of equilibrium notions between the natural sciences and economics......Page 44 1 Equilibrium in mechanics and then in economics, 1860–1920: A good source for analogies?......Page 46 2 Between economics and chemistry: Lavoisier’s and Le Chatelier’s notions of equilibrium......Page 72 3 The ubiquity of the notion of equilibrium in biology, and its relation with equilibrium in economics......Page 87 Part II: Equilibrium in pre-neoclassical economics......Page 102 4 ‘Sympathy’, ‘character’ and economic equilibrium......Page 104 5 Economic equilibrium in the French Enlightenment: the case of A.N. Isnard......Page 119 6 Influences on the economic theory of A.A. Cournot: Mechanics, physics and biology......Page 141 Part III: Equilibrium in present-day economic theory and practice......Page 158 7 Tensions in modern economics: The case of equilibrium analysis......Page 160 8 Equilibrium and problem solving in economics......Page 177 9 Equilibrium analysis: A middlebrow view......Page 193 10 Equilibrium in economics, stability and stationarity in econometrics......Page 228 11 Equilibrium in economics: Some concepts and controversies......Page 251 12 Heavens above: What equilibrium means for economics......Page 267 13 The hypostatisation of the concept of equilibrium in neoclassical economics......Page 288 Name index......Page 307 Subject index......Page 309 The Contributions In This Text Highlight Current Notions Of Equilibrium In Economics And Provides A Guide To Understanding The Links Between Economic Theory And Economic Reality. Introduction : Three Ways Of Looking At Economic Equilibrium / Valeria Mosini -- Equilibrium In Mechanics And Then In Economics, 1860-1920 : A Good Source For Analogies? / Ivor Grattan-guinness -- Between Economics And Chemistry : Lavoisier's And Le Chatelier's Notions Of Equilibrium / Bernadette Bensaude-vincent And Valeria Mosini -- The Ubiquity Of The Notion Of Equilibrium In Biology, And Its Relation To Equilibrium In Economics / Louise Jarvis And Valeria Mosini -- 'sympathy', Character And Economic Equilibrium / William Dixon And David Wilson -- Economic Equilibrium In The French Enlightenment : The Case Of A.n. Isnard / Richard Van Den Berg -- Influences On The Economic Theory Of A.a. Cournot : Mechanics, Physics And Biology / François Vatin -- Tensions In Modern Economics : The Case Of Equilibrium Analysis / Tony Lawson -- Equilibrium And Problem Solving In Economics / Roger E. Backhouse -- Equilibrium Analysis : A Middlebrow View / Warren J. Samuels -- Equilibrium In Economics, Stability And Stationarity In Econometrics / Jim Thomas --equilibrium In Economics : Some Concepts And Controversies / Victoria Chick -- Heavens Above : What Equilibrium Means For Economics / Alan Freeman -- The Hypostatisation Of The Concept Of Equilibrium In Neoclassical Economics / Andy Denis. Edited By Valeria Mosini. Includes Bibliographical References And Indexes. General Equilibrium Theory, which became the dominating paradigm after the Second World War, is founded on the postulated existence, uniqueness, and stability of equilibrium in economic processes. This book highlights the notions of equilibrium in economics and provides an understanding of the links between economic theory and economic reality