Theory of Value: An Axiomatic Analysis of Economic Equilibrium.

DEBREU, Gerard.

$1,250.00

Item Number: 121497

New York: John Wiley & Sons, 1959.

First edition of the groundbreaking work by Debreu, winner of the 1983 Nobel Prize in Economics, viewed as “one of the few classics of our period” by the prestigious American Economic Review for his revolutionary insights into the economics of “‘general equilibrium”—demonstrating a “freely competitive economy can, in theory, reach a state in which supply balances demand in every market… an entire economy could, at least theoretically if not necessarily in fact, be in equilibrium” (Time). Octavo, original cloth. In near fine condition, lacking the dust jacket. First editions are scarce.

"Theory of Value is Debreu's classic book...which presents a rigorous yet succinct exposition of the theory of general economic equilibrium, follows a logical and structured direction. Having outlined in the opening chapter the mathematical concepts and results used in the rest of the book, Debreu then discusses the concepts of a commodity and prices, producer behavior, consumer behavior, equilibrium, the relationship between equilibrium and Pareto optimality, and uncertainty" (Vane and Mulhearn, The Nobel Memorial Laureates in Economics). Debreu won the 1983 Nobel Prize for incorporating "new analytical methods into economic theory and for his rigorous reformulation of the theory of general equilibrium" (Nobel Prize Committee). His "masterpiece, Theory of Value (1959), showed that a freely competitive economy can, in theory, reach a state in which supply balances demand in every market and there are neither shortages nor surpluses of any product. Such a condition is called 'general equilibrium.' Economists have always known that supply could equal demand in a single market… But before Debreu they could not be certain that an entire economy could, at least theoretically if not necessarily in fact, be in equilibrium." His brilliant insight into "one of the deepest and most nagging problems in economics" made Debreu "a revered figure among his colleagues" (Time). On its publication the reviewer for the preeminent American Economic Review deemed Theory of Value "one of the few classics of our period." Its influence was widespread, prompting economists to apply his "theories to problems like analyzing business cycles and measuring the cost to the economy of inefficiencies like traffic congestion… 'He brought to economics a mathematical rigor that had not been seen before'" (New York Times).