Stationary Temporary Equilibrium in a General Model of Optimal Accumulation and Trade

Manjira Datta

No 97/8, Working Papers from Arizona State University, Department of Economics

Abstract: This paper analyzes the movement of market-clearing prices in an intertemporal general equilibrium framework and, in particular, proves the existence of a stationary temporary equilibrium. A model of a competitive economy is developed which consists of several "small" countries engaged in consumption, production and trade. Following Hicks, one way to look at the evolution of an economic system is to view it as a succession of temporary competitive equilibria. The aspect of stationarity is interesting because if the sequence of temporary equilibria converges to a steady-state, it must converge to a stationary temporary equilibrium. A linear-logarithmic economy exhibits convergence.

JEL-codes: D51 D52 D90 F10 (search for similar items in EconPapers)
View list of references

Downloads: (external link)
http://www.cob.asu.edu/ecn/papers/WP1997/wp97_8.pdf (application/pdf)

Related works:
Working Paper: Stationary Temporary Equilibrium in a General Model of Optimal Accumulation and Trade
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Working Papers from Arizona State University, Department of Economics
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().