Walras’s law of markets as special case of the general Triangle Theorem: a laconic proof

Egmont Kakarot-Handtke ()

MPRA Paper from University Library of Munich, Germany

Abstract: From the set of the first three structural axioms follows the - economic - triangle theorem. It asserts that the product of the three key ratios, which characterize the firm, the market outcome, and the income distribution, is always equal to unity. The theorem contains only unit-free variables, is testable in principle, and involves no behavioral assumptions. The differentiated triangle theorem applies to an arbitrary number of firms. Therefrom Walras’s Law can be derived without recourse to demand and supply functions or the notion of equilibrium.

Keywords: new framework of concepts; structure-centric; axiom set; market clearing; commodity market; labor market; full employment; wage rate flexibility (search for similar items in EconPapers)
JEL-codes: C00 D40 D50 (search for similar items in EconPapers)
Date: 2013-02-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/44547/1/MPRA_paper_44547.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:44547

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().