Micro-foundations of the social change

Abstract

The aim of this work is to show the relationship between the fundamentals of the economy and social changes in a framework of the General Equilibrium Theory. To analyze this relationship we introduce the Negishi map. This map makes evident the social impact of the efficient reassignments of the economical resources. The social and economic changes occur along the graph of this map. A deeper analysis of this map shows that the social crisis can be perceptible like points in this graph corresponding to the singular economies (from a social point of view). We analyze the possibilities to obtain, in a decentralized way, an equalitarian level of social welfare for an economy with total resources given. This means the possibility to obtain a stable economy in the sense that every agent reach in equilibrium, the same level of utility. Finally we discuss efficiency and equalitarianism in fair economies. © Springer-Verlag Berlin Heidelberg 2011.