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A micro foundational episode of the early history of macroeconomics: a 1932 debate on Walrasian economics and multiple equilibria.
- Source :
-
European Journal of the History of Economic Thought . Feb2024, p1-18. 18p. 2 Illustrations, 3 Charts. - Publication Year :
- 2024
-
Abstract
- AbstractThis paper documents an early fork in the development of macroeconomics, by examining a debate between the Dutch economists Jan Tinbergen and Johan Koopmans. In a 1932 paper, Tinbergen argued that two firms could be stuck in a “bad” equilibrium in the absence of a coordinated action to incrase employment. Koopmans replied with a paper demonstrating that multiple equilibria in an exchange economy could not be ranked on the basis of their productive efficiency. This debate contributed to a larger turn away from dynamising the general equilibrium model, towards the new field of macrodynamics, with long-ranging consequences for the field. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09672567
- Database :
- Academic Search Index
- Journal :
- European Journal of the History of Economic Thought
- Publication Type :
- Academic Journal
- Accession number :
- 175292263
- Full Text :
- https://doi.org/10.1080/09672567.2024.2305952