Editing Kenneth Arrow (section)

===General equilibrium theory===
{{Main|General equilibrium theory|Arrow–Debreu model}}
Work by Arrow and [[Gérard Debreu]] and simultaneous work by [[Lionel W. McKenzie|Lionel McKenzie]] offered the first [[Arrow–Debreu model|rigorous proofs of the existence of a market clearing equilibrium]].<ref>{{cite book |first1=Andreu |last1=Mas-Colell |first2=Michael D. |last2=Whinston |first3=Jerry R. |last3=Green |title=Microeconomic Theory |location=New York |publisher=Oxford University Press |year=1995 |isbn=0-19-507340-1 |pages=691–93 |url=https://books.google.com/books?id=KGtegVXqD8wC&pg=PA691 }}</ref> For this work and his other contributions, Debreu won the 1983 Nobel Prize in Economics.<ref>{{cite news|title=Gerard Debreu – Biographical|url=https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1983/debreu-bio.html|access-date=25 February 2017|work=nobelprize.org}}</ref> Arrow went on to extend the model and its analysis to include [[uncertainty#Concepts|uncertainty]], the [[Lipschitz continuity|stability]]. His contributions to the general equilibrium theory were influenced by [[Adam Smith]]'s ''[[Wealth of Nations]]''.<ref name="Maskin">{{cite journal |last1=Maskin |first1=Eric S. |title=The Economics of Kenneth J. Arrow: A Selective Review |journal=Annual Review of Economics |date=2 August 2019 |volume=11 |issue=1 |pages=1–26 |doi=10.1146/annurev-economics-080218-030323 |s2cid=164272068 |language=en |issn=1941-1383|doi-access=free }}</ref> Written in 1776, ''The Wealth of Nations'' is an examination of [[economic growth]] brought forward by the division of labor, by ensuring interdependence of individuals within society.<ref>Smith, Adam, and Andrew S. Skinner. The wealth of nations. London: Penguin Books, 1999. Print.</ref>

In 1974, The American Economic Association published the paper written by Kenneth Arrow, ''General Economic Equilibrium: Purpose, Analytic Techniques, Collective Choice'', where he states:

{{blockquote|From the time of Adam Smith's ''Wealth of Nations'' in 1776, one recurrent theme of economic analysis has been the remarkable degree of coherence among the vast numbers of individual and seemingly separate decisions about the buying and selling of commodities. In everyday, normal experience, there is something of a balance between the amounts of goods and services that some individuals want to supply and the amounts that other, different individuals want to sell. Would-be buyers ordinarily count correctly on being able to carry out their intentions, and would-be sellers do not ordinarily find themselves producing great amounts of goods that they cannot sell. This experience of balance is indeed so widespread that it raises no intellectual disquiet among laymen; they take it so much for granted that they are not disposed to understand the mechanism by which it occurs.<ref>{{cite journal |last=Arrow |first=Kenneth |title=General Economic Equilibrium: Purpose, Analytic Techniques, Collective Choice |journal=[[American Economic Review]] |volume=64 |issue=3 |year=1974 |pages=253–72 |jstor=1808881 }}</ref>}}