Unlimited Quote Collections
Organize your favorite quotes without limits. Create themed collections for every occasion with Premium.
General competitive equilibrium above all teaches the extent to which a social allocation of resources can be achieved by independent private decisio… - Kenneth Arrow
" "General competitive equilibrium above all teaches the extent to which a social allocation of resources can be achieved by independent private decisions coordinated through the market. We are assured indeed that not only can an allocation be achieved, but the result will be Pareto efficient. But, as has been stressed, there is nothing in the process which guarantees that the distribution be just. Indeed, the theory teaches us that the final allocation will depend on the distribution of initial supplies and of ownership of firms. If we want to rely on the virtues of the market but also to achieve a more just distribution, the theory suggests the strategy of changing the initial distribution rather than interfering with the allocation process at some later stage.
English
Collect this quote
About Kenneth Arrow
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, who was Professor Emeritus of Economics in Stanford, and joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972.
Also Known As
Birth Name:
Kenneth Joseph Arrow
Alternative Names:
Kenneth J. Arrow
•
Ken Arrow
Related quotes. More quotes will automatically load as you scroll down, or you can use the load more buttons.
Additional quotes by Kenneth Arrow
The uncertainty of the future is inescapable, one must think about it and arrive at plans for action. A statement attributed to a number of thinkers is, "Prediction is very difficult, especially of the future." Postdiction, knowing what went on in the past, is also difficult. The past, however, is our basis for understanding the future.
Ever since I encountered Hicks’s Value and Capital while I was still a graduate student, I had the aim of completing and extending his vision of the economic system in its purest form. This was not because I believed that the economic world was perfectly competitive or that it was clearly self-equilibrating; after all, Chamberlin, Robinson, and Keynes were dominant intellectual influences, and I had the even more powerful influence of the facts of massive unemployment and large corporations. But the idea that the economic world was a general system, with all parts interdependent, seemed (and seems) to me to be an essential of good analysis. I regret what appears to be a revival of single-market thinking both among monetarists and among some of the younger empirical analysts. Then as now, the only game in town that offered a general system of economic interdependence was general competitive equilibrium, an idea to which the name of Leon Walras is imperishably linked. At least, such a system would provide a starting point for analysis of the market’s imperfections.
Works in ChatGPT, Claude, or Any AI
Add semantic quote search to your AI assistant via MCP. One command setup.
Loading...