The Theory of General Economic Equilibrium : A Differentiable Approach (Econometric Society Monographs)

Rating:
Summary: This book is the best book ever written on economics.
Review: Economics has been rigorized and advanced by the brilliant work of Debreu and Mas-Collel relating differential topology to the structure of the pseudo-equilbrium manifold. This book is an incredible summary and extension of that project, critical to our understanding of the economy.

Rating:
Summary: An excellent summary of advances in general equilibium
Review: Making use of differential topology, Andreu Mas-Collel's book is an excellent synthesis of new techniques in general equilbrium theory. Traditionally, general equilibrium theory has been dominated by convexity analysis. The existence have been driven by assumptions such as convex preferences. Mas-Collel shows another possible route from which to analyze markets : conditions on derivatives. Amongst other acheivements, the book discusses how using a differentiable approach can allow for simple calculations on the number of equilibria (using index theory). Counting the number of equilibria is an area where the traditional convexity approach has been remarkably unsuccessful. The theory is elegant and straight-forward.

The presentation is clear. The book begins with an introduction to differential topology giving the less mathematically sophisticated reader enough background in concepts like transversality to understand the economics results which are proved later in the book. Concepts are developped slowly and in an intelligent manner with equilibrium theories occurring later in the book. On the whole, this book is a great contribution to economics and ought to be required reading for all economic theorists.