Marshall's Theory of Value and the Strong Law of Demand

We show that all the fundamental properties of competitive equilibrium in Marshall's theory of value, as presented in Note XXI of the mathematical appendix to his Principles of Economics (1890), derive from the Strong Law of Demand. This is, existence, uniqueness, optimality, global stability of equilibrium prices with respect to tantonnement price adjustment and refutability follow from the cyclical monotonicity of the market demand function in the Marshallian general equilibrium model.

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Year of publication:	2007-07
Authors:	Brown, Donald J. ; Calsamiglia, Caterina
Institutions:	Cowles Foundation for Research in Economics, Yale University
Subject:	Partial equilibrium analysis \| Short run equilibrium \| Strong law of demand \| Cyclical monotonicity \| Legendre-Frenchel duality

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Extent:	application/pdf
Series:	Cowles Foundation Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The price is None Number 1615 8 pages
Classification:	B13 - Neoclassical through 1925 ; C62 - Existence and Stability Conditions of Equilibrium ; D11 - Consumer Economics: Theory ; D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005762791