In the first chapter of the book, we learned that the Walrasian model epitomizes the essence of economic reasoning where a cause may affect the consequence in a way that is complex, indirect, and counterintuitive.
Walras´s theory is characterized by free competition, uniform prices, but as mentioned in the paper “General Equilibrium Theory - Walras versus post-Walras Economists: ´Finding Equilibrium´ - Losing Economics”, Davar mentions that Walras theory does not address the public sector and international trade.
The main achievement of modern General Equilibrium Theory is the proof of equilibrium´s existence. But, what if Walrasian equilibrium doesnt exists? As mentioned in the book, one must seek a prediction, a notion of equilibrium that would exist. Then the question persists, and then it becomes whether these evidences are well matched with the economic situation in reality.
In the paper mentioned before, it is said that its been the post-Walras´s economists who have misunderstood and misinterpreted Walras´s economic theory, whose main objetive was the proof of equilibrium existence. However, “this proof was based on unrealistic assumptions and along the road the goal of economics was lost.”
Today, mathematical modeling is the irrefutable framework for facilitating and organizing economic discovery.