The Flawed Foundations of General Equilibrium Theory

The book critiques general equilibrium theory, revealing its unrealistic assumptions and limitations while offering insights for students and researchers in economics and social sciences.

In The Flawed Foundations of General Equilibrium Theory, the authors delve into the intricacies of general equilibrium, a cornerstone of mainstream economic thought. By examining its theoretical underpinnings, they reveal how this framework often describes an idealized and unattainable world, highlighting the disconnect between theory and reality. The book challenges readers to reconsider the validity of these assumptions and their implications for economic modeling.

Through a critical lens, the authors argue that despite its widespread acceptance, general equilibrium theory is built on counterfactual premises that do not hold up under scrutiny. The contributors, under the expert guidance of editors Ackerman and Nadal, present a collection of essays that dissect various aspects of the theory, illustrating its limitations and the consequences of relying on such a flawed model in economic analysis.

The Flawed Foundations of General Equilibrium Theory is not only a valuable resource for students and researchers in economics, but also for those in related social sciences. By engaging with the material, readers will gain a deeper understanding of the complexities involved in economic theory and the importance of questioning established norms. This book serves as a call to action for a more nuanced approach to economic modeling, encouraging a shift away from the unrealistic assumptions that have long dominated the field.