Document Type
Discussion Paper
Publication Date
8-1-2000
CFDP Number
1272
CFDP Pages
21
Abstract
Irving Fisher’s Ph.D. thesis, submitted to Yale University in 1891, contains a fully articulated general equilibrium model presented with the broad scope and formal mathematical clarity associated with Walras and his successors. In addition, Fisher presents a remarkable hydraulic apparatus for calculating equilibrium prices and the resulting distribution of society’s endowments among the agents in the economy. In this paper we provide an analytical description of Fisher’s apparatus, and report the results of simulating the mechanical/hydraulic “machine,” illustrating the ability of the apparatus to “compute” equilibrium prices and also to find multiple equilibria.
Recommended Citation
Brainard, William C. and Scarf, Herbert E., "How to Compute Equilibrium Prices in 1891" (2000). Cowles Foundation Discussion Papers. 1524.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1524