Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/98355 
Year of Publication: 
1997
Series/Report no.: 
Center Discussion Paper No. 782
Publisher: 
Yale University, Economic Growth Center, New Haven, CT
Abstract: 
This paper discusses the testable implications of the Walrasian hypotheses: H1 Observed market demand is the sum of consumer's demands derived from utility maximization subject to budget constraints. H2 There exists an observable (locally) unique equilibrium price system such that the observable market demand is equal to the observable market supply in every market. H3 The observed equilibrium price system is a (locally) stable equilibrium of tƒtonnement price adjustment. The main results are the Brown Matzkin Theorem: H1 is testable, and the Brown Shannon Theorem: H2 and H3 are not testable.
Subjects: 
Exchange Economies
Testable Restrictions
Document Type: 
Working Paper

Files in This Item:
File
Size
147.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.