1.Previous
3.Next

and Gérard Debreu (Hicksian theory) in the 1950s.

Overview

Broadly speaking, general equilibrium tries to give an understanding of the whole economy using a "bottom-up" approach, starting with individual markets and agents. Therefore, general equilibrium theory has traditionally been classified as part of microeconomics. The difference is not as clear as it used to be, since much of modern macroeconomics has emphasized microeconomic foundations,

1.Previous
3.Next