Publications

SEI Publication

Author(s): Kemp-Benedict, E.

Year: 2011

In: arXiv:1108.0188v3 [q-fin.GN], revised 24 Aug 2011

Type: Working paper

Language:
English

Centre:
US

Link to SEI author(s):

Eric Kemp-Benedict

Second-Order, Dissipative Tâtonnement: Economic Interpretation and 2-Point Limit Cycles

The economic theory of General Equilibrium predicts that instability should be is a common feature of economies. There is, indeed, instability in economic life, but perhaps not as much as theory suggests. This paper proposes a price-adjustment mechanism with "damping" due to seller behavior that reduces the size of fluctuations.

Read the article (external link to journal)

Share this page:
Facebook MySpace Twitter Digg Delicious RSS Feed 
Close Window