Is general equilibrium theory empirically testable? Our perspective on this question differs from the standard, Sonnenschein-Debreu-Mantel (SDM) viewpoint. While SDM tradition considers aggregate (excess) demand as a function of prices, we assume that what is observable is the equilibrium price...

Consider a group consisting of S members facing a common budget constraint p'xi=1: any demand vector belonging to the budget set can be (privately or publicly) consumed by the members. Although the intragroup decision process is not known, it is assumed to generate Pareto-efficient outcomes;...

The competitive equilibrium correspondence, which associates equilibrium prices of commodities and assets with allocations of endowments, identifies the preferences and beliefs of individals also under uncertainty; this is the case even if the asset market is incomplete.

The fundamentals of an exchange economy, the preferences of individuals, can be identified from the competitive equilibrium correspondence, which associates equilibrium prices of commodities to allocations of endowments; the argument extends to production economies.