Intertemporal competitive equilibrium: a reappraisal of a basic source of instability

Sergio Parrinello

No 67, Working Papers in Public Economics from Department of Economics and Law, Sapienza University of Roma

Abstract: This paper resumes a source of instability of intertemporal equilibrium which was anticipated by Garegnani (2003) and criticized by Schefold (2004). The author points out that a non orthodox tâtonnement pricing must be accepted if the theory has to be consistent with the Jevons’s law of unique price. Such tâtonnement prescribes that the rule for adjusting the relative prices of commodities available at different times is different from the rule applied to the relative prices of contemporary commodities. The working of such a mechanism can be a fundamental source of instability of the intertemporal equilibria. This result seems to be a challenge for the stability of general equilibrium also in the context of more realistic nontâtonnement disequilibrium processes.

Keywords: Intertemporal equilibrium; instability; capital. (search for similar items in EconPapers)
JEL-codes: B13 B51 C62 D5 (search for similar items in EconPapers)
Pages: 22
Date: 2002-02
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.dipecodir.it/wpsap/data/wp67.pdf (application/pdf)

Related works:
Working Paper: Intertemporal competitive equilibrium: a reappraisal of a basic source of instability (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sap:wpaper:wp67

Access Statistics for this paper

More papers in Working Papers in Public Economics from Department of Economics and Law, Sapienza University of Roma
Bibliographic data for series maintained by Luisa Giuriato ().