Lars P. Syll — General equilibrium theory — a gross misallocation of intellectual resources and time

Almost a century and a half after Léon Walras founded general equilibrium theory, economists still have not been able to show that markets lead economies to equilibria.
We do know that — under very restrictive assumptions — equilibria do exist, are unique and are Pareto-efficient.

But after reading Frank Ackerman’s article — or Franklin M. Fisher’s The stability of general equilibrium – what do we know and why is it important? — one has to ask oneself — what good does that do?

Lars P. Syll’s Blog
General equilibrium theory — a gross misallocation of intellectual resources and time
Lars P. Syll | Professor, Malmo University