Abstract
Abstract A set of sufficiency conditions is presented for Walrasian equilibrium to be equivalent to voluntary and efficient allocations. An important corollary of this equivalence is that voluntary trade in non‐clearing markets, which is omnipresent in all market economies, is inefficient. Moreover, our assumptions generalize all the results on the Pareto‐efficiency properties of disequilibrium. This generalization also shows that the inefficiency of disequilibrium is germane to the existence of Walrasian equilibrium.
Keywords
Disequilibrium
Inefficiency
Economics
Corollary
Equivalence (formal languages)
Pareto principle
Mathematical economics
Generalization
Microeconomics
General equilibrium theory
Clearing
Mathematics
Subject Areas
Economic theories and models
·Economics and Econometrics ·Social Sciences
Economic Theory and Institutions
·Economics and Econometrics ·Social Sciences
Economic Theory and Policy
·General Economics, Econometrics and Finance ·Social Sciences
OpenAlex SDG Match
SDGs auto-classified by OpenAlex (score ≥ 0.4 shown).
Partnerships for the goals 50%
Loading…