This paper presents a model of spontaneous economic order within the framework of general equilibrium theory . Our study shows that if a competitive economy is enough free and fair , then a spontaneous economic order shall emerge in long-period competitive equilibrium so that social members together occupy an optimally economic allocation . Despite this, the spontaneous order may degenerate in the form of economic crisis whenever an equilibrium economy approaches the extreme competition. Remarkably, such a theoretical framework of spontaneous order presents a bridge connecting Austrian economics and Neoclassical economics, where we indeed comprehend a truth: "Freedom drives economic development ".
This paper provides an attempt to formalize Hayek's notion of spontaneous order within the framework of the Arrow-Debreu economy . Our study shows that if a competitive economy is enough fair and free , then a spontaneous economic order shall emerge in long-run competitive equilibria so that social members together occupy an optimal distribution of income . Despite this, the spontaneous order might degenerate in the form of economic crises whenever an equilibrium economy approaches the extreme competition. Remarkably, such a theoretical framework of spontaneous order provides a bridge linking Austrian economics and Neoclassical economics, where we shall comprehend a truth: "Freedom promotes technological progress ".
R
presents a model of spontaneous economic
provides an attempt to formalize Hayek's notion of spontaneous
R
general equilibrium theory
the Arrow-Debreu economy
R
free and fair
fair and free
R
long-period competitive equilibrium
long-run competitive equilibria
R
optimally economic allocation
optimal distribution of income
R
may
might
R
crisis
crises
R
presents a bridge connecting
provides a bridge linking
R
indeed
shall
R
drives economic development
promotes technological progress