Abstract
Economic theory is pre-eminently a matter of equilibrium analysis. In particular, the centrepiece of the subject – general equilibrium theory – deals with the existence and efficiency properties of competitive equilibrium. Nor is this only an abstract matter. The principal policy insight of economics – that a competitive price system produces desirable results and that government interference will generally lead to an inefficient allocation of resources – rests on the intimate connections between competitive equilibrium and Pareto efficiency.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Arrow, K.J., and F.H. Hahn. 1971. General competitive analysis. San Francisco/Edinburgh: Holden-Day/Oliver & Boyd.
Clower, R.W. 1965. The Keynesian counterrevolution: A theoretical appraisal. In The theory of interest rates, ed. F.H. Hahn and F.P.R. Brechling. London/New York: Macmillan/St. Martin’s Press.
Edgeworth, F.Y. 1881. Mathematical psychics, Reprinted. New York: Augustus M. Kelley, 1967.
Fisher, F.M. 1974. The Hahn process with firms but no production. Econometrica 42: 471–486.
Fisher, F.M. 1976. A non-tâtonnement model with production and consumption. Econometrica 44: 907–938.
Fisher, F.M. 1983. Disequilibrium foundations of equilibrium economics. Cambridge: Cambridge University Press.
Hahn, F.H. 1961. A stable adjustment process for a competitive economy. Review of Economic Studies 29: 62–65.
Hahn, F.H. 1962. On the stability of pure exchange equilibrium. International Economic Review 3: 206–214.
Hahn, F.H., and T. Negishi. 1962. A theorem on non-tâtonnement stability. Econometrica 30: 463–469.
Scarf, H. 1960. Some examples of global instability of the competitive equilibrium. International Economic Review 1: 157–172.
Schumpeter, J. 1911. The theory of economic development. 4th printing of English trans. Cambridge, MA: Harvard University Press, 1951.
Uzawa, H. 1962. On the stability of Edgeworth’s barter process. International Economic Review 3: 218–232.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Fisher, F.M. (2018). Adjustment Processes and Stability. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_140
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_140
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences