Question

1. What did later researchers (from the 1970’s) find out about general equilibrium theory?

Answer 1

The general equilibrium theory gets to explain about the supply, demand, and prices in a whole economy with several or many interacting markets on the whole. There are certain issues that the GET popped out to be helpful where certain economists and researchers have developed a lot using the GET and these include

1) Scarf in the year 1973 got to develop a computational algorithm to find fixed points that indeed satisfied the conditions of Brouwer’s fixed-point theorem on the whole.

2) De Melo, Robinson and Dixon ( around 1980's) got to develop the Harberger's linearized equilibrium system to obtain an approximate equilibrium of the GET.

3) Apart from that, there are also certain economic policies that are actually developed with the help of this GET>