Great Economists Since Petty and Boisguilbert
Edited by Gilbert Faccarello and Heinz D. Kurz
Chapter 90: John von Neumann (1903–1957)
Two Contributions? The impact of John von Neumann’s “model of general economic equilibrium” could be evaluated by the number and names of laureates of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel who refer to this work: Kenneth Arrow, Gérard Debreu, Paul Samuelson, Tjalling Koopmans, Leonid Kantarovich, and Robert Solow. Weintraub (1983: 13) claims that von Neumann’s “A model of general economic equilibrium” (GE) is “the single most important article in mathematical economics” while Baumol (1972) labels GE “the most remarkable virtuoso performance” in this field. Indeed, GE is a virtuoso performance, but one can easily get advanced degrees in economics without having heard of this paper. This is not to say that advanced students of economics do not study both general equilibrium theory and growth theory, but they might never learn that the mathematical treatment of both has one of its roots in von Neumann’s GE. Von Neumann presented this paper at the Mathematical Seminar of Princeton University in 1932 and in Karl Menger’s Mathematical Colloquium at the University of Vienna in 1936. It was published in German in 1937 and in English in 1945, see von Neumann (1937 ). This is quite different to the second area of economics that von Neumann inspired with his work, that is, game theory. Of course, we cannot answer the question of how game theory would look today, or whether there would be any game theory at all, if von Neumann had never presented the minimax theorem...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.