新结构经济学workshop: The Debreu and Arrow-Debreu Approach to General Equilibrium via the Method of Abstract Economies, with a Discussion of Possible Applications to the Chinese Economy
(Charles L. Hutchinson Distinguished Service Professor Emeritus, University of Chicago)
Title: The Debreu and Arrow-Debreu Approach to General Equilibrium via the Method of Abstract Economies, with a Discussion of Possible Applications to the Chinese Economy
Equilibrium Existence Theorems have played a central role in the development of the modern theory of GE (general equilibrium). These theorems give formal expression to the coherence of the standard model of perfect competition. Most treatments of GE existence place excess demand functions at the center of the analysis. We study an alternative approach, which is based on Debreu, 1952, Proc. Nat’l Acad. Sci, and is used in Arrow-Debreu, 1954, Em. We argue that this alternative approach is more suitable when one is interested in models with an active government: with taxes, with public investments, and even with a government utility function. I pose the following questions: Do you believe that equilibrium existence theorems are important/useful in the Chinese context? Might the abstract economy approach be a useful technique for establishing existence theorems for equilibrium models of the Chinese Economy?
Hugo Sonnenschein is President Emeritus and Distinguished Service Professor Emeritus of Economics at the University of Chicago. He served as President of the University of Chicago from 1993 to 2000. Prior to that, he was Provost of Princeton University and Dean of the School of Arts and Sciences at the University of Pennsylvania. Professor Sonnenschein’s current research is in the area of game theory; however, he continues to think about problems in general equilibrium, social choice, and mechanism design. He has published extensively in the top academic journals of the economics discipline, including American Economic Review, Econometrica, and Journal of Political Economy. He is currently on the Advisory Board for Journal of Mathematical Economics from 1985 and was the Co-Editor for Fundamentals of Economics and Editor for Econometrica. Professor Sonnenschein is a laureate of the 2009 BBVA Foundation Frontiers of Knowledge Award (with Andreu Mas-Colell) for Economics, Finance and Management. He is a member of the National Academy of Sciences, a fellow of the American Academy of Arts and Sciences, a member of the American Philosophical Society, and a Distinguished Fellow of the American Economic Association. He has served as President of the Econometric Society, Chairman of the Board of Argonne National Laboratories, Director of the National Merit Scholarship Corporation, and Member of the Civic Committee of the City of Chicago. Professor Sonnenschein received his Ph.D. in Economics degree from Purdue University in 1964.