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Partial Equilibrium





DEFINITION


A partial equilibrium is a special case of the general Economic Equilibrium , where the clearance on the market of some specific goods is obtained independently from prices and quantities demanded and supplied on other goods' markets.


HISTORY


Whereas Walras' mathematic theorizing formalized the idea of a one-period economic equilibrium of the general economic system, Marshall's works tried to inquire the partial case of that economic system. So, Walras stands for the father of all GEE frameworks in economics, while Marshall authored the first partial one.