Exploring General Equilibrium
An inclusive, unconventional assessment of general equilibrium theory, and what this theory reveals about business cycles, growth, and labour economics. The author explains and discusses the wide range of the general equilibrium theory without using sticky prices, irrationality, economies of scale, or imperfect competition. It can explain the volatility of consumption, output, sales, investment, and inventories with axiomatic utility and constant-returns-to-scale production. This theory can also explain temporary layoffs, job changes with and without intervening unemployment and the behaviour of vacancies.
Table of Contents
- Classical theories
- Puzzles
- Stylized facts
- What matters
- What doesn't matter
- Aspects of general equilibrium
- General utility
- Consumption smoothing
- Local substitution
- Production
- Output
- Firms
- Inputs
- Smoothed output
- Units and unit value
- Consumption
- Innovation
- Return
- Risks
- Shocks
- The match
- Sectors
- Growth
- Convergence
- Migration
- Volatility
- Business cycles
- Durables
- Inventories
- Careers
- Obsolescence
- Human capital
- Output and effort
- Unmeasured activity
- World human capital and effort
- Saving and investment
- Incomplete markets
- Money
- Inflation
- Fixed and floating exchange rates
- The great depression
- Evidence
- Issues
- Readings
- Neutral technical change