Imperfect general equilibrium. The economy as an evolutionary process: Individualistic, discrete, deterministic (Q1333024)

This monograph presents an ``imperfect'' general equilibrium model in which the role of the auctioneer is taken over by fiat money issued and managed by a public authority, and firms are allowed to choose their output prices. Chapter 1 provides a survey of the literature and thereby identifies the place of the imperfect general equilibrium model in the history of economic thought. -- Chapter 2 provides an illustrative example to show the differences among the Walrasian equilibrium, imperfect equilibrium without money, and imperfect equilibrium with money. -- Chapter 3, 4 and 5 present the elements of the imperfect temporal general equilibrium model, namely goods, fiat money, public administration (P.A.), firms and consumers. -- Chapter 6 defines and proves the existence of the imperfect intertemporal general equilibrium. The key features of this model are that (1) firms implement rationing by means of a ``random waiting scheme'' whereby buyers are served on the ``first come, first served'' basis, (2) the P.A. has a priority in employing workers, (3) the labor market is ordered in the sense that unemployment and labor rationing do not coexist, and (4) there are three overlapping generations of consumers -- young consumers, adults and retired agents. The model also defines a price updating rule whereby the P.A. adjusts the wage rate in accordance with the excess demand for labor, but provides for at least a subsistence level. -- Chapter 7 describes the dynamics of the temporary equilibrium around the stationary state where the equilibrium price vector is compatible with the Walrasian equilibrium. Chapter 8 presents numerical simulations, which show that cycles and quasi-chaos can happen in this model. -- Chapter 9 further consider compares micro and macro analysis in this model. The author argues that contrary to common assertion, macroeconomic analysis is more abstract than microeconomics analysis. Overall, the monograph contributes to the general equilibrium theory by enhancing our understanding of the role played by money and the characteristics of dynamic adjustments of the economy.