ABSTRACT
The second half of the nineteenth century saw the rise of the religious seminaries. Chairs of Economics were established at universities, where learned professors devoted themselves to interpretation of the Holy Scripture. One of the pioneers in the application of mathematics to economic theory was the French economist, Augustin Cournot. His Researches into the Mathematical Principles of the Theory of Wealth included the use of calculus in marginal analysis, derivation of the demand curve, and the effect of restricted and unrestricted competition on the behaviour of producers. In commenting on the economic crises which afflict the real world, Leon Walras offers the advice that “the more people know of the ideal conditions of equilibrium, the better they shall be able to control or prevent these crises”. The advantage of general equilibrium analysis over partial equilibrium analysis is that, once the problem has been formulated correctly, relationships cannot be overlooked.
