It is shown that Leon Walras developed two separate theories of tatonnement. One is a disequilibrium-production model. The other is a pledges model, in which transactions and production occur only at the equilibrium set of prices. These models are explained, and the manner in which they appear in the vari ous editions of Walras's Elements is used to account for the developm ent of conflicting interpretations of his writings on tatonnement. It is shown that the disequilibrium-production model is more representa tive of Walras's work than the pledges model and that the latter is i ncompatible with the theories of particular aspects of economic behav ior on which the Elements depends for its verisimilitude and explanat ory power.

This paper is concerned with tests and confidence intervals for parameters that are not necessarily point identified and are defined by moment inequalities. In the literature, different test statistics, critical-value methods, and implementation methods (i.e., the asymptotic distribution versus the bootstrap) have been proposed. In this paper, we compare these methods. We provide a recommended test statistic, moment selection critical value, and implementation method. We provide data-dependent procedures for choosing the key moment selection tuning parameter κ and a size-correction factor η.