> Mostly using Convex Set Theory and Brouwer Fixed Point Theorem from topology to prove the existence, uniqueness, and stability of a general equilibrium solution for a "market" of price-quantity commodity pairs. The assumptions needed to make it work are literally absurd.
This is true for the first foundational courses in micro and macro. The profession has moved beyond this and the last forty plus years of research have been looking at various relaxations of these assumptions.
Even the undergrad is like this. I was shocked to learn it wasn’t a historical study of economic theory and instead a technical course in stats and modeling.
This is true for the first foundational courses in micro and macro. The profession has moved beyond this and the last forty plus years of research have been looking at various relaxations of these assumptions.