Professor Kenneth J. Arrow is one of the most distinguished economic theorists. He has played a major role in shaping the subject and is honoured by the publication of three volumes of essays on economic theory. Each volume deals with a different area of economic theory. The books include contributions by some of the best economic theorists from the United Stated, Japan, Israel and Europe. This second volume is entitled Equilibrium Analysis and is divided into sections on general equilibrium and on the microfoundations of macroeconomics.
Part I. General Equilibrium: 1. A general equilibrium theory of North-South trade Graciela Chichilnisky; 2. Soldiers of fortune? Theodore Bergstrom; 3. The dynamics of industrywide learning Nancy L. Stokey; 4. Decentralised trade in a credit economy Ross M. Starr; 5. Lump-sum taxes and transfers: public debt in the overlapping-generations model Yves Balasko and Karl Shell; 6. Coordination failure under complete markets with applications to effective demand Walter P. Heller; Part II. Microfoundations of Macroeconomics: 7. Price flexibility, inventory behaviour and production responses Heinz Koenig and Marc Nerlove; 8. On asymmetric information, unemployment and inflexible wages Mordecai Kurz; 9. Asymmetric adjustment costs and sectoral shifts Laurence Weiss; 10. Implicit contracts and risk aversion Takatoshi Ito; 11. An exercise in non-Walrasian analysis Frank Hahn; 12. Monopolistic competition and the multiplier Robert M. Solow.