Jump to ContentJump to Main Navigation
Equilibrium Models in EconomicsPurposes and Critical Limitations$
Users without a subscription are not able to see the full content.

Lawrence A. Boland

Print publication date: 2017

Print ISBN-13: 9780190274320

Published to Oxford Scholarship Online: May 2017

DOI: 10.1093/acprof:oso/9780190274320.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 27 January 2021

Equilibrium concepts and critiques

Equilibrium concepts and critiques

Two cultures

(p.57) Chapter 5 Equilibrium concepts and critiques
Equilibrium Models in Economics

Lawrence A. Boland

Oxford University Press

This chapter explores the equilibrium concept by examining the views of two cultures: those who began talking about equilibrium models in the decades before World War II and those formal model builders promoting mathematics after that war. For the older culture, the concept of an equilibrium refers to the real properties of an actual economy in a state of equilibrium. For the newer culture, an equilibrium refers only to a property of a formal mathematical model. The main discussion of the chapter is about the various critiques provided by both sides of the cultural divide. The chapter also discusses the extent to which the distinction between a model’s exogenous vs. endogenous variables involves causality. The older culture would view causality as a necessary part of understanding an equilibrium but the newer culture would view it only as an interpretation of the mathematics of the model.

Keywords:   equilibrium existence, equilibrium uniqueness, equilibrium stability, exogenous variables, endogenous variables, causality in economic models

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .