Reconsidering equilibrium: a socio-economic perspective

Equilibrium is one of the most venerable concepts of neoclassical economics. In this paper we undertake a critical reconsideration of the concept of equilibrium within the framework of socio-economics (or economic sociology) as an analysis of the social nature, composition, and co-determination of the economy. The concept of market-economic equilibrium is critically reconsidered on the following grounds: its static implications, its spurious equation with optimum, its complex relations to social equilibrium, and its social co-determination. The conclusion is that the concept of (especially general) market equilibrium is of questionable explanatory value from the perspective of socio-economics.