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This book aims to explain to the readers the basic idea of the general equilibrium theory, which forms the core of the current mainstream economics called neoclassical school. To understand this theory is absolutely necessary, either to study further or to criticize the contemporary economic theories. The author not only explains traditional theories, but also makes clear the many problems which are still unsolved.
As a text book or reference book for those students who are studying microeconomics for the first time, the author recommends the use of Chapter 1, Chapter 2 (except section 9), Chapter 3 (from section 1 to section 3, section 6, section 11), Chapter 4 (from section 1 to section 4), Chapter 5 (from section 1 to section 5, section 8), Chapter 6 (except sections 6 and 7), Chapter 7 (from section 1 to section 5), Chapter 8 (from section 1 to section 6) and Chapter 9 (sections 1, 4 and 7). For more advanced readers, the author recommends the remaining sections and the literature recommended in the last part of each chapter. Problems given at the end of each chapter allow readers to confirm understanding of the content of the chapter and suggest to the readers more advanced studies. Incidentally, the author tried to avoid the use of the advanced mathematics. Only elementary knowledge of differential calculus and linear algebra are required to read this book.
Takashi Negishi
A member of the Japan Academy, professor emeritus of the University of Tokyo, former president of the Econometric Society, and former president of The Japanese Society for the History of Economic Thought. Professor Negishi was awarded the Nikkei Prize for Economics Books in 1973, the Japan Academy Prize in 1993, the Order of the Sacred Treasure, Gold and Silver Star in 2008, and the Order of Culture in 2014.
Major journal articles include "Welfare Economics and Existence of an Equilibrium for a Competitive Economy" (Metroeconomica , June 12, 1960, 92-97) and "The Stability of a Competitive Economy: A Survey Article" ( Econometrica Vol. 30, No. 4, Oct. 1962, pp. 635-669). Professor Negishi is the author of several books, including General Equilibrium Theory and International Trade (1972, North-Holland Publishing; Received the Nikkei Prize for Economics Books), History of Economic Theory (1989, North-Holland Publishing; Received the Japan Academy Prize), and Collected Essays of Takashi Negishi , three volumes (1994 and 2000, Edward Elgar Publishing Ltd.).
Professor Negishi taught and conducted research at Stanford University, the University of Tokyo, the University of New South Wales, the University of Minnesota, and the London School of Economics.
His major contributions range from general equilibrium theory and welfare economics (existence, optimality, and stability), theory of monopolistic competitions (kinked demand curves), and micro foundations of Keynesian macroeconomics, to the history of economics. For the details of these contributions, see the International Journal of Economic Theory , Vol. 4, No. 2, June 2008: "A Special Issue on Social Welfare, Market Equilibrium and Stability in Honor of Professor Takashi Negishi."
Introduction.- Firms and Production.- Households and Consumption.- Market Equilibrium (1).- Market Equilibrium (2).- Perfect and Imperfect Competition.- Optimal Allocation of Resources.- Market Failures.- Optimal Income Distribution.- Microeconomic Foundations of Macroeconomics.
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