Scarcity and Gains from Trade

Abstract

In this book I intend to give an overview of the insights as developed in the theory of general economic equilibrium. Besides presenting the main results in the literature, I develop several new insights. As the name suggests, general equilibrium theory addresses the modelling of a global economy, i.e., it describes the totality of interactions among all economic decision making institutions and persons in a society. These decision makers include individuals, households, firms, labor unions, non-profit organizations, governmental agencies, political parties as well as lobby groups such as the ACLU and the NRA. The ultimate goal of general equilibrium theory is to extend our understanding of global human economic interaction and the consequences of changes in that interaction.