Customer Reviews

General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory

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This book is a competent textbook on the basics of General Equilibrium and Overlapping Generations models. It is adequate for graduate and undergraduate students of economics. But is it simply put, boring and takes too much time and examples to teach GE theory. There are shorter and better books out there, like the Mas-Colell's microeconomics textbook. So, I don't recommend this book for students looking to learn GE theory.

There are an absurd number of typos, so much so that parts of the book are unreadable because equations have been written incorrectly. As an example, see page 261 condition 1. First, the vector expansion of x-hat gives all subscripts as 1 instead of the subscripts going from 1 to I. Second, the ' is not superscripted, and worst of all the feasibility condition is written completely incomprehensibly: instead of giving the sum of the x-bars across i is less than or equal to the sum of endowments across i, it simply gives the sum of the x-bars(with their subscripts missing) times the endowments across i, with no inequality whatsoever. As icing on the cake it's written in the first person (why?) and the diction is terrible. As to the actual material, I thankfully didn't have to read the whole thing, but what I did read (Ch 7), was serviceable but long-winded.

This book is relevant for the actual society, because it represents the sense of general equilibrium, what it depends by the markets and the individual preference of client. The explication is particullary simple and I don't have the difficulties existent in other texts.