Jacques Drèze

In instituting its prospective studies the European Cultural Founda­ tion has to some extent gone against tradition. Until now those who were deeply committed to the idea of a European Community looked into the past rather than into the future for bases on which the com­ munity could be integrated. However, if we want a European society to become a reality it must be built on the basis of shared fundamental values. The majority of publications dealing with a unified or inte­ grated Europe have until now accepted that this foundation guarantee­ ing the stability of a future European society should be found in certain common elements of the history of the European nations. The futurological studies instituted by the European Cultural Foun­ dation have not rejected this mode of approach outright. They have respected the historical framework indispensable to any futurological undertaking. But the research and discussions of the groups working within the framework of Plan Europe 2000 offer increasing support to the conviction expressed by Gaston Deurinck in the first words of his introduction to the present study: "The future does not exist .. thf> future is to be created, and before being created, it must be conceived, it must be invented, and finally willed" ..

This book is a selection of Jacques Drèze’s work over the last decade on the topics of lasting unemployment, stagflation and unused capacity. At the theoretical level, the author has contributed to the formulation and analysis of general equilibrium models which allow for price rigidities and excess supply and lend themselves to econometric implementation, thus represents an attempt to integrate micro- and macroeconomics, and to use theory for empirical and policy purposes.

This 1991 book is a selection of Jacques Drèze's work over the last decade on the topics of lasting unemployment, stagflation and unused capacity. At the theoretical level, the author has contributed to the formulation and analysis of general equilibrium models which allow for price rigidities and excess supply and lend themselves to econometric implementation, thus represents an attempt to integrate micro- and macroeconomics, and to use theory for empirical and policy purposes.

Professor Dreze is a highly respected mathematical economist and econometrician. This book brings together some of his major contributions to the economic theory of decision making under uncertainty, and also several essays. These include an important essay on 'Decision theory under moral hazard and state dependent preferences' that significantly extends modern theory, and which provides rigorous foundations for subsequent chapters. Topics covered within the theory include decision theory, market allocation and prices, consumer decisions, theory of the firm, labour contracts, and public decisions.