Dilemmas in Economic Theory

Dilemmas in Economic Theory examines the innovations of postwar economics and argues that the greater generality of current equilibrium analysis conceals deep-seated problems. This book does not dismiss neoclassical theory. Instead, it identifies internal difficulties and dilemmas. Dilemmas in Economic Theory links the technical arcana of contemporary theory to the substantive questions that economists wrestled with prior to the Arrow-Debreu revolution. But it does not try to revive long-expired theoretical fashions. Early neoclassical welfare theorists were unable to supply the interpersonal welfare comparisons that utilitarianism requires, and plausible versions of marginal productivity are applicable only under narrow circumstances. This book instead explores foundational problems and the challenges of solving them. When these difficulties are recognized, a more coherent and credible economic theory can emerge.