Walrasian market-clearing framework

E273018

economic theory framework general equilibrium model

The Walrasian market-clearing framework is a general equilibrium model in which perfectly competitive markets continuously adjust prices so that supply equals demand in all markets simultaneously.

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All labels observed (9)

Label	Occurrences
Walrasian general equilibrium	2
Arrow–Debreu general equilibrium theory	1
Edgeworth conjecture	1
General equilibrium theory	1
Walrasian auctioneer	1
Walrasian equilibrium	1
Walrasian general equilibrium model	1
Walrasian market-clearing framework canonical	1
Walras’s law	1

How this entity was disambiguated

This entity first appeared as the object of triple T2509138 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.

NED1 Entity disambiguation (via context triple) gpt-5-mini-2025-08-07

Target entity: Walrasian market-clearing framework
Context triple: [New Classical macroeconomics, basedOn, Walrasian market-clearing framework]

A. The Theory and Measurement of Demand
The Theory and Measurement of Demand is a foundational economics book by Henry Schultz that rigorously develops statistical and mathematical methods for estimating consumer demand.
B. Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
C. Three Essays on the State of Economic Science
Three Essays on the State of Economic Science is a seminal collection of essays by economist Tjalling C. Koopmans that helped shape modern econometric and economic theory through its rigorous analysis of scientific methodology in economics.
D. On the Theory of Economic Policy
On the Theory of Economic Policy is a foundational work in economics by Jan Tinbergen that systematically analyzes how governments can design and coordinate economic policies using formal models and quantitative methods.
E. “Propagation Problems and Impulse Problems in Dynamic Economics”
“Propagation Problems and Impulse Problems in Dynamic Economics” is a seminal paper by Ragnar Frisch that laid the foundations of modern business cycle theory by distinguishing between the driving shocks to the economy and the mechanisms that propagate them over time.
F. None of above. chosen
G. Unsure - the case is ambiguous/there is not enough information to decide.

NED2 Entity disambiguation (via description) gpt-5-mini-2025-08-07

Target entity: Walrasian market-clearing framework
Target entity description: The Walrasian market-clearing framework is a general equilibrium model in which perfectly competitive markets continuously adjust prices so that supply equals demand in all markets simultaneously.

A. The Theory and Measurement of Demand
The Theory and Measurement of Demand is a foundational economics book by Henry Schultz that rigorously develops statistical and mathematical methods for estimating consumer demand.
B. Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
C. Three Essays on the State of Economic Science
Three Essays on the State of Economic Science is a seminal collection of essays by economist Tjalling C. Koopmans that helped shape modern econometric and economic theory through its rigorous analysis of scientific methodology in economics.
D. On the Theory of Economic Policy
On the Theory of Economic Policy is a foundational work in economics by Jan Tinbergen that systematically analyzes how governments can design and coordinate economic policies using formal models and quantitative methods.
E. “Propagation Problems and Impulse Problems in Dynamic Economics”
“Propagation Problems and Impulse Problems in Dynamic Economics” is a seminal paper by Ragnar Frisch that laid the foundations of modern business cycle theory by distinguishing between the driving shocks to the economy and the mechanisms that propagate them over time.
F. None of above. chosen

Statements (48)

Predicate	Object
instanceOf	economic theory framework ⓘ general equilibrium model ⓘ
appliedIn	foundations of DSGE models ⓘ theoretical analysis of competitive markets ⓘ
assumes	complete markets ⓘ flexible prices ⓘ instantaneous price adjustment in theory ⓘ no externalities in basic form ⓘ no individual agent has market power ⓘ no public goods in basic form ⓘ perfect information ⓘ perfectly competitive markets ⓘ price-taking behavior ⓘ profit-maximizing firms ⓘ rational agents ⓘ utility-maximizing consumers ⓘ
contrastsWith	Keynesian fixed-price models ⓘ linked to: Keynesian business cycle theories partial equilibrium analysis ⓘ
coreConcept	market clearing ⓘ perfect competition ⓘ price adjustment ⓘ simultaneous equilibrium in all markets ⓘ tatonnement process ⓘ
criticizedFor	assuming instantaneous market clearing ⓘ ignoring price rigidities ⓘ strong informational assumptions ⓘ
defines	equilibrium as a price vector where all markets clear ⓘ market clearing as equality of supply and demand ⓘ
field	general equilibrium theory ⓘ microeconomics ⓘ
goal	analyze efficiency properties of competitive equilibria ⓘ determine existence of a general equilibrium ⓘ
historicalOrigin	19th century ⓘ
implies	equilibrium allocation is Pareto efficient under standard assumptions ⓘ
influenced	macroeconomic general equilibrium models ⓘ modern microeconomic theory ⓘ welfare economics ⓘ
influencedBy	Léon Walras’s Elements of Pure Economics ⓘ linked to: Éléments d’économie politique pure
mathematicalTool	fixed-point theorems ⓘ topological methods in economics ⓘ
namedAfter	Léon Walras ⓘ linked to: Leon Walras
relatedConcept	Arrow–Debreu model ⓘ competitive equilibrium ⓘ excess demand function ⓘ first welfare theorem ⓘ second welfare theorem ⓘ linked to: second fundamental theorem of welfare economics
uses	price vector as central variable ⓘ system of simultaneous equations for markets ⓘ

How these facts were elicited

Referenced by (10)

Full triples — surface form annotated when it differs from this entity's canonical label.

New Classical macroeconomics → basedOn → Walrasian market-clearing framework ⓘ

Léon Walras → knownFor → Walrasian general equilibrium ⓘ

subject linked to: Leon Walras