Walrasian Economy
Blissex said...
«Don Patinkin considered an economy in which n - 1 commodities and "money" are traded. "For the amount of excess demand for money equals the aggregate value of the amounts of excess supplies of commodities."[ ... ] I believe Patinkin's approach can be seen as building on»
Patinkin's approach was not quite original, as it was building on standard non-neoclassical thinking. Both Marx and at the opposite side Keynes wrote quite a bit about inventories of "fictitious capital" or "liquidity" absorbing mistakes in the "tatonnement" process.
«Keynes's emphasis on fundamental uncertainty is arguably incompatible with the explanation of the demand for money by intertemporal utility-maximizing in a model of General Equilibrium.»
As you know there are many problems with General Equilibrium approaches, whether intertemporal or not, and the only reason why they are popular is their truthiness about the pareto-optimality of the distribution of income.
But the fundamental link with the underlying thinking of Keynes (and Marx and many others from the opposite or same side) is that "tatonnement" is wishful thinking, and true equilibrium never happens, and prey-predator modeling may be more productive.
I haven't seen this mentioned often, but this can also be expressed by saying that notional and actual demand and supply can be rather different, and that the notional is rather more important than the actual, and that in particular ex-ante intentions to consume or save are not the same as ex-post outcomes of consumption or saving, and the difference manifests in inventory changes (inventories of financial or physical goods/assets).
But even this very limited injection of sense has been refused with the Lucas trick, because it would invalidate the central truthiness. "Tatonnement" must always be error-free, forever.
My impression is that in Keynes' own thought intertemporal effect dominate, and the links between past present and future are uncertainty/animal spirits and capital (whether financial or means of production), and errors do happen (just consider his discussion of 3 levels of stock market pricing).
I tend to agree, and it is not happenstance that both uncertainty and capital are completely absent from Serious Economics.
Indeed Serious Economics entirely lacks a theory of capital that isn't a laugh, and this despite the Cambrige Capital Controversy 60 years ago. That nobody has felt like fixing that, and that Serious Economists don't ever talk about that (outside small applied studies), while capital and its formation and use is the very core of political economy, should tell you everything. And I guess it has.
BTW I think I already mentioned this, but one of Keynes' most interesting hints was the seemingly obvious one that almost all capital is long term.
If Serious Economics were not a propaganda tool this would have been the starting point of a lot of important research, because the really curious thing is not that there are cycles, but that oscillations are so small, short term, and around a pretty clear trend, so something must acting as ballast.
But overall: BAH!
Walrasian Economics book download
Donald A. Walker
Download Walrasian Economics
Walrasian Economics - Cambridge Books Online - Cambridge. Negishi examines a broad range of topics in the history of economics that have relevance to current economic theories. The treatment. The author contends that one of the tasks for. Beyond microfoundations: post. "...books like this are fun to read..." Andrew John, Journal of Economic Literature "...this book is extremely valuable for expanding the horizon of economic thinking. Colander - Google Books This book spells out both why an alternative approach to macro is needed,. but it offers an approach to macro in which Walrasian economics is turned on its head. Amazon.com: Beyond Microfoundations: Post Walrasian Economics. New York: Cambridge University Press, 2006. Walrasian Economics by Donald A Walker (Used, New, Out-of-Print. Alibris has Walrasian Economics and other books by Donald A Walker, including new & used copies, rare, out-of-print signed editions, and more. Beyond New Keynesian Economics: Towards a Post Walrasian Macroeconomics * David Colander, Middlebury College 1 In the early 1990s in a two-volume edited book (Mankiw. x + 357 pp. Walker, Walrasian Economics. This 2006 book explains the state of Walrasian general economic equilibrium theory and its history, which incorporates most of microeconomic theory. Alibris has Beyond Microfoundations: Post Walrasian Economics and other books by David Colander (Editor), including new & used copies, rare, out-of-print signed. - Takashi Negishi. Economic Theories in a Non-Walrasian