Walras’s stability

Named after French- born economist Leon Walras (1834-1910), who laid the groundwork for a unified model which included theories of exchange, production, formation and theory.

Walras asserted that if there are n markets and n-1 markets are in equilibrium, then the last market must be in equilibrium as well.

Also see: general equilibrium theory, partial equilibrium theory

Source:
L Walras, Elements d’economie politique pure (Lausanne, 1874-77);
M Morishima, Equilibrium, Stability and Growth (Oxford, 1964)

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