Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-28T07:55:04.538Z Has data issue: false hasContentIssue false
  • English
  • Français

Expected Equilibrium and Fix-Price Equilibrium in a Simple Macroeconomic Model: Equivalence Theorems and Stability(*)

Published online by Cambridge University Press:  17 August 2016

Philippe Michel
Get access

Abstract

The recent development of macroeconomic models with fixed prices and adjustment of quantities has shown the importance of considering the type of unemployment in the economy, since this determines the effects of economic policy decisions. The fundamental concept of this theory, namely fix-price equilibrium with quantity rationing, presents similarities with Walrasian equilibrium. Its interpretation is based on tatonnements on quantities instead of tatonnements on prices.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 48 , Issue 1 , 1982 , pp. 57 - 76
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1982 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

(*)

A first version of this paper was written while I was visiting the University of California, Berkeley, in April 1980. This revised version was written while I was visiting at C.O.R.E., Université Catholique de Louvain.

(**)

Université de Paris I, Centre de Mathématiques Economiques, 12, Place du Panthéon – 75005 Paris-France.

References

[1] Barro, R.J. and Grossman, H.I., (1971), A General Disequilibrium Model of Income and Employment, American Economic Review.Google Scholar
[2] Barro, R. J. and Grossman, H. I., (1976), Money, Employment and Inflation, Cambridge University Press, Cambridge.Google Scholar
[3] Benassy, J. P., (1975), Neo-Keynesian Disequilibrium in a Monetary Economy, Review of Economic Studies.Google Scholar
[4] Benassy, J. P., (1977), A Neo-Keynesian Model of Price and Quantity Determination in Disequilibrium, in Equilibrium and Disequilibrium in Economic Theory, Schwodiauer, G. (ed.), Dordrecht.Google Scholar
[5] Benassy, J. P., (1977), On Quantity Signals and the Foundations of Effective Demand Theory, Scandinavian Journal of Economics.Google Scholar
[6] Clower, R. W., (1965), The Keynesian Counterrevolution: A Theoretical Appraisal, in The Theory of Interest Rate, Hahn, and Brechling, (eds.), MacMillan, London, pp. 270–297.Google Scholar
[7] Drèze, J., (1975), Existence of an Equilibrium under Price Rigidity and Quantity Rationing, International Economic Review.Google Scholar
[8] Grandmont, J. M., (1977), Temporary General Equilibrium Theory, Econometrica.Google Scholar
[9] Hildenbrand, K. and Hildenbrand, W., (1978), On Keynesian Equilibria with Unemployment and Quantity Rationing, Journal of Economic Theory, 18, pp. 255–277.Google Scholar
[10] Keynes, J. M., (1937), The General Theory of Employment, Interest and Money, McMillan, London.Google Scholar
[11] Malinvaud, E., (1977), The Theory of Unemployment Reconsidered, Basil Blackwell, Oxford.Google Scholar
[12] Malinvaud, E., and Younés, Y., (1977), Une nouvelle formulatíon générale pour l’étude des fondements microéconomiques de la macroéconomie, Cahiers du Séminaire d’Econometrie du CNRS, 18, pp. 63–112.Google Scholar
[13] Michel, P., (1980) Keynesian Equilibrium and Fix-price Equilibria, Warwick University working paper (No. 164).Google Scholar
[14] Muellbauer, J., and Portes, R., (1978) Macroeconomic Models with Quantity Rationing, The Economic Journal, 88, 788–821.Google Scholar
[15] Varian, H. R., (1975), On Persistent Disequilibrium, Journal of Economic Theory, 10, pp. 218–228.Google Scholar
[16] Younes, Y., (1975), On the Role of Money in the Process of Exchange and the Existence of a Non-Walrasian Equilibrium, Review of Economic Studies, 42, pp. 489–501.Google Scholar