The concept(s) and controversies of equilibrium

Abstract

Equilibrium is one of the key concepts not only in economics, but in social science in general as well as the natural sciences. However, in no other field has it received, to my knowledge, such a central role, nor drawn as much sharp criticism. It’s claimed to be indispensible for economic modelling and theorizing, and yet at the same time it’s a major target for criticism. A recent debate about the concept has resulted in a number of articles and books on the topic, taking widely different stands on how equilibrium is to be understood, its role in economic theory and methodology, and what this role means for economics as a science. This book is a welcome and valuable contribution to this debate. The book has three parts. The first one deals with how economics has borrowed equilibrium concepts and methods from the natural sciences, the second with how equilibrium was conceptualised and used by some early economic theorists, and the third with issues concerning equilibrium in modern economic theory. The general impression from a first reading is of the immense number of different concepts grouped together as ‘‘the’’ concept of equilibrium, and the reader is left with a greater appreciation of why discussions of equilibrium in economics often become so confused. However, the book also raises crucial questions about the role of economics as a science, about the role of theories and models, and their relation to the real world which we aim to explain.