September 1992
Herbert E. Scarf -- Distinguished Fellow
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Herbert Scarf has made a number of epoch-making research contributions to economic theory. He is internationally known for his early work on (S, s) inventory policy and for his development of the "Scarf algorithm" for nonlinear complementarity problems. He has likewise achieved worldwide recognition for his contributions to the stability of competitive equilibrium, his pioneering analysis (with Gerard Debreu) of the relationship between competitive equilibrium and the core, his application of the "Scarf algorithm" to the computation of equilibrium prices, and his study of indivisibilities in models of production.
Scarf's path-breaking technique for the computation of equilibrium prices has resulted in a new subdiscipline of economics: the study of applied general equilibrium models. His students and a large number of other researchers have applied general equilibrium models to issues such as the analysis of tax reforms, trade policies, economic integration; and development. Scarf was the catalyst behind the creation of this subfield of the profession and in the transformation, of the general equilibrium model from a purely theoretical construct to a useful tool for policy analysis.
Scarf's work is elegant, careful, and deep. He has always stressed quality over quantity in publications. He is an absolutely superb teacher. In all respects, he has been an inspiration and role model to his students at Yale and to his colleagues all over the world.