Book contents
- Frontmatter
- Contents
- Preface
- 1 The method of dynamic analysis
- 2 Households' and firms' economic behaviour
- 3 Stability conditions for a temporary equilibrium: the linear case
- 4 Stability conditions for a temporary equilibrium: the non-linear case
- 5 Comparative dynamics
- Appendices
- Mathematical notes
- ADDENDUM
- Introduction
- Article I Walras' own theory of tatonnement [partly written in 1958]
- Article II Tatonnement in quantities: truncation, equilibration, growth [1956]
- Article III A contribution to the non-linear theory of the trade cycle [1958]
- Article IV Stability, oscillations and chaos
- Article V A generalization of the gross substitute system [1970]
- Article VI The laws of the working of the quasi-Frobenian system [1954, yet unpublished]
- Article VII The Cournot–Walras arbitrage, resource consuming exchange, and competitive equilibrium (with M. Majumdar) [1978]
- Article VIII The dilemma of durable goods
- References
- Index
Article II - Tatonnement in quantities: truncation, equilibration, growth [1956]
Published online by Cambridge University Press: 08 February 2010
- Frontmatter
- Contents
- Preface
- 1 The method of dynamic analysis
- 2 Households' and firms' economic behaviour
- 3 Stability conditions for a temporary equilibrium: the linear case
- 4 Stability conditions for a temporary equilibrium: the non-linear case
- 5 Comparative dynamics
- Appendices
- Mathematical notes
- ADDENDUM
- Introduction
- Article I Walras' own theory of tatonnement [partly written in 1958]
- Article II Tatonnement in quantities: truncation, equilibration, growth [1956]
- Article III A contribution to the non-linear theory of the trade cycle [1958]
- Article IV Stability, oscillations and chaos
- Article V A generalization of the gross substitute system [1970]
- Article VI The laws of the working of the quasi-Frobenian system [1954, yet unpublished]
- Article VII The Cournot–Walras arbitrage, resource consuming exchange, and competitive equilibrium (with M. Majumdar) [1978]
- Article VIII The dilemma of durable goods
- References
- Index
Summary
This section was originally published in the form of an independent article as Morishima, 1956, which may, however, be regarded as an example of the negative counterpart of the text of this volume. In the text we are concerned with an economy in which equilibration is made in terms of prices, while quantities are assumed to depend on prices, whereas in this article it is made in terms of quantities, all prices being implicitly assumed to be kept constant. The problem of price adjustment versus quantity adjustment later became a topic of general equilibrium analysis in the 1960s and the early 1970s.
As far as we measure the time t in an ordinary way by calendar time, the equilibrium to be established at t = ∞ is no more than a kind of utopia which is never realized at an actual point in time. Therefore, where we formulate a tatonnement process in terms of differential or difference equations, we should either transform the calendar time into a tatonnement time which tends to infinity at a certain point of the calendar time, as we have done so in the text, or we should truncate the tatonnement process at a certain point of the calendar time, as Walras did in his Elements.
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- Information
- Dynamic Economic Theory , pp. 207 - 221Publisher: Cambridge University PressPrint publication year: 1996