Abstract
In an earlier paper [13], the present author developed an econometric model of Canadian manpower markets which was based on neoclassical producer and consumer theory. In this model, many variables (such as industry outputs, nonlabour income, the price of capital services, etc.) were taken to be exogenous when in fact they should be endogenously determined within the model. (In fact in the neoclassical framework, the only exogenous variables are tastes, technological knowledge, the initial distribution of resources and perhaps various demographic variables.) Thus the main task of this paper will be to develop a framework for an econometrically implementable model of producer and consumer behavior which has only tastes, technology, distribution of resources and population as exogenous variables.
If nineteenth century France, which was the cradle of the new science [of economics], has completely ignored it, the fault lies in the idea, so bourgeois in its narrowness, of dividing education into two separate compartments: One turning out calculators with no knowledge whatsoever of sociology, philosophy, history or economics; and the other cultivating men of letters devoid of any notion of mathematics. The twentieth century, which is not far off, will feel the need, even in France, of entrusting the social sciences to men of general culture who are accustomed to thinking both inductively and deductively and who are familiar with reason as well as experience. Then mathematical economics will rank with the mathematical sciences of astronomy and mechanics; and on that day justice will be done to our work.
Leon Walras, 1900
This work was supported by the National Sceince Foundation Grant GS-2874-A1 at the Institute for Mathematical Studies in the Scoail Sciences at Stanford University, Standford, California and by a Canada Council grant.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
Bibliography
Allen, R.G.D., Mathematical Economics, Second Edition, Macmillan, London, 1959.
Ando, A. and Modigliani, F., ‘The “Life Cycle” Hypothesis of Saving’, A.E.R. 53 (1963), 55–84.
Arrow, K.J., ‘The Firm in General Equilibrium Theory’, ch. 3 of The Corporate Economy (ed. by R. Marris and A. Wood), Macmillan, New York, 1971.
Arrow, K.J. and Debreu, G., ‘Existence of an Equilibrium for a Competitive Economy’, Econometrica 22 (1954), 265–290.
Arrow, K.J. and Hahn, F.H., General Competitive Analysis, Holden-Day, Inc., San Francisco, 1971.
Becker, G. S., ‘A Theory of the Allocation of Time’, The Economic Journal 75 (1965), 493–517.
Berge, C., Topological Spaces, The Macmillan Co., New York, 1963.
Cagan, P., ‘The Monetary Dynamics of Hyperinflation’, in M. Friedman (ed.), University of Chicago Press, 1956.
Christensen, L.R., Saving and the Rate of Return, unpublished Ph. D. dissertation, University of California, Berkeley, 1968.
Clower, R.W., ‘The Keynesian Counter-Revolution: A Theoretical Appraisal’, ch. 5 of The Theory of Interest Rates (ed. by F.H. Hahn and F. P.R. Brechling), St. Martin’s Press, N.Y., 1965.
Debreu, G, A Social Equilibrium Existence Theorem, Proceedings of the National Academy of Sciences of the U.S.A. 38 (1952), 886–893.
Debreu, G., Theory of Value, John Wiley, New York, 1959.
Diewert, W.E., ‘Canadian Labour Markets: A Neoclassical Econometric Approach’, Research Branch, Dept. of Manpower and Immigration, Canada, June 1971.
Diewert, W. E., ‘An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function’, J.P.E. 79 (1971), 481–507.
Diewert, W. E., ‘Intertemporal Consumer Theory and the Demand for Durables’, Econometrica 42 (1974), 497–516.
Diewert, W. E., ‘Choice on Labour Markets and the Theory of the Allocation of Time’, Research Branch, Dept. of Manpower and Immigration, Canada, 1971.
Diewert, W. E., ‘Functional Forms for Profit and Transformation Functions’, Journal of Economic Theory 6 (1973), 284–316.
Eilenberg, S. and Montgomery, D., ‘Fixed Point Theorems for Multi-Valued Transformations’, Amer. J. of Math. 68 (1946), 214–222.
Fisher, Irving, The Rate of Interest, Macmillan, New York, 1907.
Gale, D., ‘The Law of Supply and Demand’, Mathematica Scandinavica 3 (1955), 155–169.
Griliches, Z., ‘Distributed Lags: A Survey’, Econometrica 35 (1967), 16–49.
Hahn, F. H., ‘On Some Problems of Proving the Existence of an Equilibrium in a Monetary Economy’, ch. 6 of The Theory of Interest Rates (ed. by F. H. Hahn and F. P.R. Brechling), St. Martins’ Press, New York, 1965.
Hicks, J.R., ‘Leon Walras’, Econometrica 2, (1934), 338–348.
Hicks, J. R., Value and Capital, Second Edition, Oxford at the Clarendon Press, 1946.
Hicks, John, Capital and Growth, Oxford University Press, Oxford, 1965.
Houthakker, H.S. and Pollak, R.A., The Theory of Consumer’s Choice, to be published by Holden-Day.
Jorgenson, D.W., ‘Anticipations and Investment Behavior’, pp. 35–94 in The Brookings Quarterly Econometric Model of the United States (ed. by James S. Duesenberry and others), Chicago, Rand McNally, 1965.
Kakutani, S., ‘A Generalization of Brouwer’s Fixed Point Theorem’, Duke Math. J. 8(1941), 457–459.
Malinvaud, E., ‘Interest Rates in the Allocation of Resources’, ch. 11 in The Theory of Interest Rates (ed. by F.H. Hahn and F.P.R. Brechling), St. Martin’s Press, N.Y. 1965.
McFadden, D. (ed.), An Econometric Approach to Production Theory, forthcoming.
Morishima, M., Equilibrium, Stability and Growth, Oxford University Press, Oxford, 1964.
Morishima, M., Theory of Economic Growth, Oxford University Press, Oxford, 1969.
Muth, F.J., ‘Rational Expectations and the Theory of Price Movements’, Econometrica (1961).
Negishi, T., General Equilibrium Theory and International Trade, North-Holland Publishing Co., Amsterdam, 1972.
Nerlove, M., ‘Adaptive Expectations and Cobweb Phenomena’, Quart. J. Econ. 73(1958).
Neumann, J. von, ‘A Model of General Economic Equilibrium’, Rev. of Econ. Stud. XIII (1945–1946), 1–9.
Nikaido, H., ‘On the Classical Multilateral Exchange Problem’, Metroeconomica 8(1956), 135–145.
Nikaido, H., ‘A Technical Note on the Existence Proof for Competitive Equilibrium’, Economic Studies Quarterly 8 (1962), 54–58.
Radner, R., ‘Market Equilibrium and Uncertainty: Concepts and Problems’, pp. 43–90 in Frontiers of Quantitative Economics Volume II (ed. by M.D. Intriligator and D.A. Kendrick), North-Holland Publishing Co., Amsterdam, 1974.
Saito, M., ‘Professor Debreu on “Theory of Value”: A Review Article’, Int. Econ. Review 2 (1961), 231–237.
Shephard, R.W., Cost and Production Functions, Princeton Univ. Press, Princeton, N.J., 1953.
Shubik, M., Strategy and Market Structure, John Wiley, New York, 1959.
Taubman, P. and Wilkinson, M., ‘User Cost, Capital Utilization and Investment Theory’, Int. Econ. Rev. 11 (1970), 209–215.
Walras, Leon, Elements of Pure Economics (transi, by W. Jaffe), R. D. Irwin, Homewood, Illinois, 1954.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1977 D. Reidel Publishing Company, Dordrecht, Holland
About this chapter
Cite this chapter
Diewert, W.E. (1977). Walras’ Theory of Capital Formation and the Existence of a Temporary Equilibrium. In: Schwödiauer, G. (eds) Equilibrium and Disequilibrium in Economic Theory. Theory and Decision Library, vol 13. Springer, Dordrecht. https://doi.org/10.1007/978-94-010-1155-6_9
Download citation
DOI: https://doi.org/10.1007/978-94-010-1155-6_9
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-1157-0
Online ISBN: 978-94-010-1155-6
eBook Packages: Springer Book Archive