A zero-sum mathematical principle of developed by Leon Walrus in 1844 stating that all markets are either in equilibrium or in disequilibrium, and that it is not possible for only one market to be in disequilibrium. Where there is excess supply in one market there must be an equivalent excess demand in another market that produces a zero sum.
Related information about Walras' Law:
- Walras' law - Wikipedia, the free encyclopedia
Walras' Law is a principle in general equilibrium theory asserting that budget constraints imply that the values of excess market demands (or, conversely, excess ...
- Walras Law Guide
Jun 20, 2000 ... The relevance of Walras Law for macroeconomic (and especially ... Their argument is based on Walras Law (or, more fully, "Walras Law of ...
- Walras' Law Definition | Investopedia
An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out.
- WALRAS' LAW - The Strands
WALRAS' LAW. Walras' Law (so named by Lange, 1942) is an expression of the ... For reasons that will become clear later, I shall derive Walras' Law in a more ...
- Walras' Law and Keynesian Macroeconomics ... - Thomas Palley
This paper examines the claim that Keynesian models violate Walras' law. ... Keynesian models satisfactorily account for Walras' law, this lends credence to their ...
- Walras's Law Definition & Example | InvestingAnswers
We explain the definition of Walras's Law, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Walras Law - Financial Dictionary - The Free Dictionary
The principle that, if all markets for all goods and services in an economy are balanced, then the market for a specific good or service must also be balanced.
- Thoughts On Economics: Walras's Law Is False
Dec 5, 2011 ... Walras's law states that the sum of excess demand across all goods is zero: ... 3.0 Macroeconomic Reasoning With Walras's Law. Don Patinkin ...