Walras’s law of markets as special case of the general Triangle Theorem: a laconic proof Report as inadecuate




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Abstract

From the set of the first three structural axioms follows the - economic -triangle theorem. It asserts that the product of the three key ratios, whichcharacterize the firm, the market outcome, and the income distribution, isalways equal to unity. The theorem contains only unit-free variables, is testablein principle, and involves no behavioral assumptions. The differentiatedtriangle theorem applies to an arbitrary number of firms. Therefrom Walras’sLaw can be derived without recourse to demand and supply functions or thenotion of equilibrium.



Item Type: MPRA Paper -

Original Title: Walras’s law of markets as special case of the general Triangle Theorem: a laconic proof-

Language: English-

Keywords: new framework of concepts; structure-centric; axiom set; marketclearing; commodity market; labor market; full employment; wage rateflexibility-

Subjects: C - Mathematical and Quantitative Methods > C0 - General > C00 - GeneralD - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - GeneralD - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General-





Author: Kakarot-Handtke, Egmont

Source: https://mpra.ub.uni-muenchen.de/44547/







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