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conceptual integrity of theory and method by using rational expectations to link general equilibrium theory and vector … equilibrium theory into this framework and when he became aware of the consequences of his initial decisions. In particular, he …
Persistent link: https://www.econbiz.de/10005462972
In this Paper we propose a concept of stability for intertemporal equilibria with rational expectations: current period prices move proportionally to current period excess demand while future prices are formed according to the perfect foresight hypothesis. It is shown that this process is...
Persistent link: https://www.econbiz.de/10004968170
In Hens (1997), a new adjustment process is proposed for a setting with reopening spot and asset markets. He argues by means of an intemporal variant of Scarf's example that this process is more stable than the other processes, although in general it might be more stable or less stable. This...
Persistent link: https://www.econbiz.de/10011090350
Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies under appropriate...
Persistent link: https://www.econbiz.de/10011114541
The authors study a dynamical model of interconnected firms which allows for certain market imperfections and frictions, restricted here to be myopic price forecasts and slow adjustment of production. Whereas the standard rational equilibrium is still formally a stationary solution of the...
Persistent link: https://www.econbiz.de/10011147682
We study general equilibrium with private and incomplete state verification. Trade is agreed ex ante, that is, before private information is received. It is useful to define a list of bundles as a derivative good that gives an agent the right to receive one of the bundles in the list....
Persistent link: https://www.econbiz.de/10005001184
Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies. An open subset of...
Persistent link: https://www.econbiz.de/10005089345
This paper attempts to clarify the connection between simple economic theory models and the approach of the … sophisticated theory models, such as those related to dynamics and expectations (in the structural relations) are left for future …
Persistent link: https://www.econbiz.de/10005749713
Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies. An open subset of...
Persistent link: https://www.econbiz.de/10005836820
In this paper we propose a new tâtonnement process of short-period equilibria with rational expectations: current period prices move proportionally to current period excess demand while future prices are formed according to the perfect foresight hypothesis. It is shown that this process is...
Persistent link: https://www.econbiz.de/10008550433