Routledge Handbook of Macroeconomic Methodology

10 Equilibrium

Bert Tieben

DOI: 10.4324/9781315745992-13

The methodological assessment of equilibrium

The concept of equilibrium is generally seen as a dividing line between the schools of thought in economics (Milgate 1987; Dow 1996 [1985]). In this approach, mainstream economics is identified as ‘equilibrium economics’ and competing schools establish themselves as alternatives based on their critique on mainstream or neoclassical equilibrium. In a sense, their work represents ‘anti-equilibrium’, as in the title of Kornai’s 1971 book.

The problem with the equilibrium/anti-equilibrium division is that it lacks clarity. The number of equilibrium concepts used in economic theory is large, so that it becomes virtually impossible to establish ...