Walrasian

Part of speech: adjective

Definitions

1. Relating to the economic theories or models developed by a French economist that focus on the equilibrium of supply and demand in markets ; pertaining to a framework where all markets in an economy simultaneously clear; associated with the concept of general equilibrium in economics
2. Concerning the analytical approach named after a French scholar emphasizing balance in competitive markets ; linked to the study of how prices and quantities adjust to reach a state where all goods and services are efficiently allocated ; referring to a comprehensive system explaining market interactions overall
3. Connected to a style of economic thought that models the interactions of multiple markets achieving equilibrium collectively ; describing theories that use mathematical methods to analyze price determination in an entire economy ; involving the examination of simultaneous market clearing conditions and outcomes in economic analysis

Etymology: Léon Walras was a nineteenth-century French economist who developed a mathematical model of how prices settle when supply and demand in every market balance at once. The state he described, where no buyer or seller has reason to change the price, became known as general equilibrium, and "Walrasian" is the adjective built on his name. The word is a straightforward formation rather than a coinage with a dramatic backstory. English took Walras's surname and added the suffix "-ian", which is used to form adjectives meaning "relating to" or "characteristic of" a person, so the result reads as "of Walras" in the sense of "in the manner of his theory." The suffix itself came into English from Latin "-ianus" through French, and it is the same ending found in words like "Lutheran" and "Darwinian."

Synonyms: general equilibrium, economic equilibrium, Walrasian equilibrium