Book contents
- Frontmatter
- Contents
- List of figures
- Preface
- Acknowledgments
- Introduction
- Part I The models of the mature phase
- Part II The models of the phase of decline
- 15 The structure of the barter model of written pledges markets
- 16 Disequilibrium features of the barter model of written pledges markets
- 17 The written pledges markets in the last comprehensive model
- 18 The markets for circulating capital and money in the last comprehensive model.
- 19 Conclusion
- References
- Collation of editions of the Eléments
- Index
17 - The written pledges markets in the last comprehensive model
Published online by Cambridge University Press: 05 May 2010
- Frontmatter
- Contents
- List of figures
- Preface
- Acknowledgments
- Introduction
- Part I The models of the mature phase
- Part II The models of the phase of decline
- 15 The structure of the barter model of written pledges markets
- 16 Disequilibrium features of the barter model of written pledges markets
- 17 The written pledges markets in the last comprehensive model
- 18 The markets for circulating capital and money in the last comprehensive model.
- 19 Conclusion
- References
- Collation of editions of the Eléments
- Index
Summary
This chapter explains and evaluates Walras's modeling of written pledges markets in his last comprehensive model, concentrating on their characteristics concerning the pricing and determination of the rates of output of goods and services. It is shown that the markets do not have a demand side, that the model has no means to enable the distribution and fulfillment of pledges, and that it is lacking markets for a number of important commodities and money. It is concluded as a consequence that the written pledges markets do not have a pricing process and are not functioning systems. It is also shown that Walras's equations of general equilibrium ostensibly relating to the markets do not have referents in them.
Introduction
The term “last comprehensive model” in the opening statement refers to the comprehensive model of markets that Walras constructed during his last phase of theoretical activity. It is comprehensive in the sense that it includes productive services, primary materials, consumer commodities, new capital goods, inventories, and money. The last comprehensive model is the collection of submodels of markets – frequently described simply as models – that Walras mentioned in part VI of the fourth edition of the Eléments. He indicated that he believed the submodels are parts of a comprehensive model by describing them as the subjects of a single system of equations.
The equations
Walras presented the equations of his last comprehensive model as being composed of two parts.
- Type
- Chapter
- Information
- Walras's Market Models , pp. 372 - 396Publisher: Cambridge University PressPrint publication year: 1996