J Econ (2013) 108:203–205
DOI 10.1007/s00712-012-0312-6
BOOK REVIEW
Balasko, Yves: General Equilibrium Theory of Value
XII, 192pp. Princeton University Press, Princeton and Oxford,
2011. Cloth, £ 39.95
M. Ali Khan
Published online: 5 October 2012
© Springer-Verlag Wien 2012
Yves Balasko is a mathematical economists’ mathematical economist, and to move
away from the coined cliché, a widely-acknowledged expert in a form of economic
expression informed by the field of differential topology. This is to say topology con-
sidered from the point of view of the differential calculus: a vernacular that formalizes
smooth mappings defined on locally Euclidean (or Banach) spaces, and develops the-
orems for measures of their set of turning points. And to be sure, in keeping with
the noun rather than its adjective, a mathematical economist is, in the first place, an
economist; and with Balasko’s economics one cannot but associate elegance, parsi-
mony, simplicity, and resulting profundity. This is of course in keeping with the work
of the three economists of an earlier generation from whom he draws his inspiration:
Debreu on the one hand, and Hicks and Samuelson on the other. And going back to
an even earlier generation, Balasko’s economics, as those of Mill and Marshall, is
primarily “pictorial economics”, economics done through geometric picture-panels.
It can be an interesting parlour game to track the word picture and its derivatives in
his expositions: leaving aside chapter titles of the volume at hand, one reads in his
Postscript that the “equilibrium manifold approach has given us a remarkable picture
between market (equilibrium) prices and the fundamentals of the economy [and that]
such a picture was not available a generation ago.” As for his panels themselves,
one cannot help recalling the flower-diagrams that Meade, Johnson and Jones used to
depict solutions to problems of international trade, and Goodwin for those in growth
and dynamics. And as with these theorists, Balasko brings to bear on his geometry an
exquisite historical perspective and sensitivity: look, using again the volume at hand
as an example, at his masterful delineation of relevant narratives at the end of Chapters
2 and 8, and the third section of his Postscript.
M. Ali Khan (B )
The Johns Hopkins University, Baltimore, USA
e-mail: akhan@jhu.edu
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