Studies in Applied Economics

First Published in 2004

Studies in Applied Economics is an English translation of Études d’économie politique appliquée (1898) by Léon Walras (1834–1910). Until now, Éléments d’économie politique pure (1874) was the only book by Walras available in English (Elements of Pure Economics, 1954).

It contains the theory of general economic equilibrium under free competition, with the concept of utility maximization as its core. Walras’s conclusion was that where free competition is possible, it should be the rule. So, in the present book, he advocates protective regulation, within which economic agents may compete freely.

For water, gas or railway transport, for instance, where free competition is impossible, rules are formulated to maintain its advantages. Issues such as money, capital, credit, banking and the stock markets are also dealt with.

The book’s final chapter recapitulates the themes of Walras’s three main works: Éléments, Études d’économie sociale and this volume, Études d’économie politique appliquée. Walras’s aim was to provide an economic blueprint for a social ideal where poverty and similar evils could be banished.