Awarded the 2nd Frontiers of Knowledge Award in Economics, Finance and Management, economist Hugo Sonnenschein explains in this interview how his contributions to microeconomic theory helped redefine the modern understanding of general equilibrium and the aggregate behavior of markets. Sonnenschein details how his mathematical formulations—including the famous Sonnenschein-Mantel-Debreu theorem—demonstrated the inherent complexity of competitive markets and highlighted the limitations of traditional models for predicting economic outcomes. His reflections underscore the importance of combining theoretical rigor and critical analysis to better understand how prices are formed, how agents interact, and why markets can behave unexpectedly.
The BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category goes in this second edition to Andreu Mas-Cole
Awarded the 2nd Frontiers of Knowledge Award in Economics, Finance and Management, economist Hugo Sonnenschein explains in this interview how his contributions to microeconomic theory helped redefine the modern understanding of general equilibrium and the aggregate behavior of markets. Sonnenschein details how his mathematical formulations—including the famous Sonnenschein-Mantel-Debreu theorem—demonstrated the inherent complexity of competitive markets and highlighted the limitations of traditional models for predicting economic outcomes. His reflections underscore the importance of combining theoretical rigor and critical analysis to better understand how prices are formed, how agents interact, and why markets can behave unexpectedly.
The BBVA Foundation Frontiers of Knowledge Award in the Economics, Finance and Management category goes in this second edition to Andreu Mas-Colell and Hugo Sonnenschein, for extending the reach and applicability of general equilibrium analysis and for establishing the modern theory of aggregate demand.
00:00 Introduction
00:20 What does this award mean to you, and how do you value it?
02:33 How do you see this award within the context of economics as a discipline?
06:05 In your opinion, how does this theory contribute to understanding how the economy functions as a system?
08:15 Regarding your work on aggregate demand, what influence has your work had on the work of others?
14:47 Do you believe your work has a real influence on daily life?
16:35 Generally speaking, do you believe that the work of theorists has a strong enough impact on practical economics?
