Abstract
General equilibrium models are economy wide models with endogenous prices. Mathematically they are systems of simultaneous nonlinear equations. No criterion function is specified for the overall model but some equations are derived using the assumption that the individual producers and consumers optimize their behavior and then the first order conditions from these maximizations are used in the model.
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© 1990 Kluwer Academic Publishers
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Kendrick, D.A. (1990). General Equilibrium. In: Models for Analyzing Comparative Advantage. Advanced Studies in Theoretical and Applied Econometrics, vol 18. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2480-2_4
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DOI: https://doi.org/10.1007/978-94-009-2480-2_4
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7619-7
Online ISBN: 978-94-009-2480-2
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