Equilibrium Visions

Mario J. Rizzo, Department of Economics

Abstract

This is an analysis of the uses of the equilibrium concept in the works of Ludwig von Mises, Friedrich Hayek and Ludwig Lachmann. It is claimed that for Mises the concept of equilibrium is an analytical tool or construct. Hayek and Lachmann thought of equilibrium in more realistic terms but differed as to the extent to which the real world approximates an equilibrium.