Open AccessThe concept of equilibrium in economics
Author(s) -
Nikola Njegovan
Publication year - 2021
Publication title -
zbornik matice srpske za društvene nauke/zbornik matice srpske za društvene nauke
Language(s) - English
Resource type - Journals
eISSN - 2406-0836
pISSN - 0352-5732
DOI - 10.2298/zmsdn2179387n
Subject(s) - general equilibrium theory , mathematical economics , process (computing) , economics , economic equilibrium , management science , neoclassical economics , computer science , positive economics , microeconomics , operating system
Equilibrium models play a central role in modern (micro)economic analysis. They form the basis of almost all our understanding in economics and are increasingly being used in other fields of social science. Yet there are numerous limitations to the equilibrium approach. To name a few: the treatment of time, i.e., the problem of distinguishing between ?time in models? and ?models in time?; learning process, i.e., the problem of knowledge necessary to attain the equilibrium; equilibrium dynamics, i.e. considering the equilibrium attainment process and not just the equilibrium state. Many critics already drew attention to the reach and limitations of the ?engineering approach? in economic science. It seems that the ?voice of reason? has never been loud enough. This paper presents a review of the above-mentioned problems.