Abstract
A quantity adjustment process for an economy with price rigidities is presented. Prom the main theorem it follows that the quantity adjustment process converges generically to a Drèze equilibrium under standard assumptions with respect to the economy. It is possible to follow the adjustment process arbitrarily close by means of a simplicial algorithm.
Zusammenfassung
Es wird ein Quantitätsanpassungsprozeß für eine Wirtschaft mit Preisstarren dargeboten. Der wichtigste Satz impliziert, daß der Quantitätsanpassungsprozeß unter Standardannahmen in bezug auf die Wirtschaft gene-risch nach einem Drèze-Gleichgewicht konvergiert. Es ist möglich den Quantitätsanpassungsprozeß mittels eines Simplizialalgorithmus nachzuvollziehen.
The author would like to thank Dolf Taiman and Jan van Geldrop for their valuable comments on previous drafts of this paper. This research is part of the VF-program “Competition and Cooperation”. The author is financially supported by the Cooperation Centre Tilburg and Eindhoven Universities, the Netherlands.
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© 1996 Springer-Verlag Berlin Heidelberg
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Herings, P.JJ. (1996). A Quantity Adjustment Process to Find Equilibria in Economies with Price Rigidities. In: Kleinschmidt, P., Bachem, A., Derigs, U., Fischer, D., Leopold-Wildburger, U., Möhring, R. (eds) Operations Research Proceedings 1995. Operations Research Proceedings, vol 1995. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-80117-4_43
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DOI: https://doi.org/10.1007/978-3-642-80117-4_43
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