I think I will abstain from most of the major points, but just I will
comment on number 4, in regards to the Walras that is referred to in
Neo-Classical (and most other equilibrium analysis today).
The story seems to me to be a very muddled one, with different strands going
of in different directions, and I would be happy if anyone has corrections
or additional points to add.
In brief, starting with Marshall and Walras, they both had the notion of a
'normal equilibrium', but where Walras used net excess demand (a la Quesnay
I would suppose), Marshall looks at the problem through prices at demand and
supply. Their conclusions are similar, equilibrium in exchange is achieved
by price adjustments and equilibrium in production through quantity
adjustments (noting that exchange happens through bartering traders with
prices signals as the 'active force')
In Pareto's Manuale, he also approached equilibrium analysis, but from a
'tastes and obstacles' perspective, focusing on price takers who optimize.
The agents are no now bith producer and consumer, and suppliers no longer
meet the demands of traders which makes the earlier need for equilibrium in
exchange irrelevant, and the price movement and setting is lost.
This system was however differentiable, and focused on efficiency (Pareto
style).
By 1918 the Vienna Colloquium, revived GE in a Walras-Cassel model,
defining GE as a set of factor prices and output prices which set supply and
demand equal. By using complimentary slackness, a static GE solution is
proved to be unique in here. (A subtle shift away from Walrasian dynamics, I
add).
During the 1930's a revival of the Paretian view took place, and the use of
calculus was beginning to make inroads. Hicks stated very clearly later his
being influenced by Pareto, and a marginalist revival (of sorts) was taking
place in academia.
As WW II broke out, the Vienna Colloquium was disbanded, and 1939 saw the
foundation of the Cowles foundation (with the maxim "Science is
measurement"), and it is through the large influx of continental European
economists who worked on Walrasian-Cassel models, into this foundation which
was strong on Paretian Equilibrium and mathematics (going hand in hand),
where the new consensus on what GE analysis should be.
I would call this, and others have, a Neo-Walrasian General Equilibrium
system, as it has very little to do with Walras himself - beyond banking on
his name.
So in respect to cui bono, it seems to have been a benefit for each
succesive generation to keep working at the 'frontier' of mathematical
economics, each proponent trying to improve on the last one's conceived
shortfalls, ending up with nothing more than fancy algebra.
The ultimate 'Chinese Whisper' gone wrong.
I have a brief paper on this if anyone is interested, but I have honestly
not submitted it anywhere, and I think the gist of what I am saying is found
above.
All the best
Benjamin H .Mitra-Kahn
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