• Table of Contents
    • Abstract
    • Keywords
    • Article
      • I Introduction
      • II The model
        • Commodities and Arrow–Debreu commodities
        • Consumers
      • III Equilibrium
      • IV Pareto optimality
        • Existence of equilibrium
        • Local uniqueness and comparative statics
      • V What the model doesn’t explain
    • See Also
    • Bibliography
    • How to cite this article

Arrow–Debreu model of general equilibrium

John Geanakoplos
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
Alternate versions available: 1987 Edition
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Abstract

In the 1950s Kenneth Arrow and Gerard Debreu showed that the market system could be comprehensively analysed in terms of the neoclassical methodological premises of individual rationality, market clearing, and rational expectations, using the two mathematical techniques of convexity and fixed point theory. In so doing they greatly advanced the use of mathematics in economics.
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Keywords

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Article

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How to cite this article

Geanakoplos, John. "Arrow–Debreu model of general equilibrium." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 28 August 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_A000133> doi:10.1057/9780230226203.0059

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