The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Non-clearing Markets in General Equilibrium

  • Jean-Pascal Bénassy
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2271

Abstract

In this article we study models with non-clearing markets in a full general equilibrium framework. The theories we describe synthesize three major schools of thought, Walrasian, Keynesian and imperfect competition. This synthesis is notably achieved by introducing quantity signals in addition to price signals into the traditional general equilibrium model. This considerably enlarges the scope of traditional general equilibrium, allowing us not only to construct equilibria with various price rigidities but also to endogenize prices in a decentralized imperfect competition framework.

Keywords

Active demand Budget constraint Dual decision method Fixprice equilibria Fixpricefixwage macroeconomic model Frictions General equilibrium Imperfect competition Keynesianism Market efficiency Monopolistic competition Non-clearing markets in general equilibrium Non-tâtonnement processes Objective demand curve Overbidding Price making Price signals Price taking Quantity constraints Quantity signals Quasi-equilibrium Rational expectations Rationing Subjective demand curves Walrasian equilibrium 

JEL Classifications

D5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jean-Pascal Bénassy
    • 1
  1. 1.