The aim of this paper is to give an account of the unfolding of macroeconomics from Keynes to the present day. To this end, I use a grid of analysis resulting from the combination of two distinctions. The first is the Marshall-Walras divide, the second is the distinction between the Keynesian conceptual apparatus and the Keynesian policy cause. On the basis of these distinctions, I construct tw...

The Austrian school is best known for its microeconomics and, in particular, for its role in the marginalist revolution. In the early 1870s, Carl Menger, along with French economist Léon Walras and English economist William Stanley Jevons, reoriented value theory by calling attention to the marginal unit of a good as key to our understanding the determination of the good’s market price. With ma...

The following topics are important teaching operation research: games theory; decision theory; utility theory; queuing theory; scheduling theory; discrete optimization. These topics are illustrated and the connection with global optimization is shown considering the following mathematical models: competition model with fixed resource prices, Nash equilibrium; competition model with free resourc...

This paper develops an approach to political equilibrium in a twoparty setting. The approach characterizes political resource allocation as trading o¤ the utility of core party supporters and swing voters, i.e. those who are not attached to either party. The model has three stages. First parties determine their electoral strategies. Second, an election is held. Third, policy is chosen. To illus...

The following topics are important teaching operation research: games theory, decision theory, utility theory, queuing theory, scheduling theory, discrete optimization. These topics are illustrated and the connection with global optimization is shown considering the following mathematical models: competition model with fixed resource prices, Nash equilibrium, competition model with free resourc...

The theory of general economic equilibrium is surely one of the central achievements of modern economics. Although economists hold a wide range of views about the theory's usefulness as a guide to understanding or ameliorating the behavior of actual economies, its theorems and results concerning the efficiencY'of price-taking be­ havior in appropriately decentralized economic environments will ...

Adam Smith’s classic treatise An Inquiry into the Nature and Causes of the Wealth of Nations effectively laid down the foundations of the economics discipline. Implicit in his analyses lies a theory of perfect competition, which was subsequently developed by Alfred Marshall and Leon Walras. The theory of perfectly competitive equilibrium (or competitive equilibrium, for short), which was built ...

We give a new mathematical formulation of market equilibria using an indirect utility function: the function of prices and income that gives the maximum utility achievable. The formulation is a convex program and can be solved when the indirect utility function is convex in prices. We illustrate that many economies including – Homogeneous utilities of degree α ∈ [0, 1] in Fisher economies — thi...

The market equilibrium problem has a long and distinguished history. In 1874, Walras published the famous “Elements of Pure Economics”, where he describes a model for the state of an economic system in terms of demand and supply, and expresses the supply equals demand equilibrium conditions [62]. In 1936, Wald gave the first proof of the existence of an equilibrium for the Walrasian system, alb...