The Competitive Process in a Fixed Capital Environment: A Classical View

Gerard Dumenil and Dominique Levy

The Manchester School of Economic & Social Studies, 1989, vol. 57, issue 1, 34-57

Abstract: A model of competition in capitalist economies, based on the works of the classics, is presented. Agents act in disequilibrium by reacting to their observations of disequilibria. They move capital across activities according to profitability differentials. They adjust prices and outputs on the basis of disequilibria on the commodity market, measured by the score of inventories. The analytical proof of the local stability of long-term equilibrium with prices of production is derived. This stability is subject to certain conditions. The notion of a short-term "classical" equilibrium is presented in which the misallocation of capital is corrected by the adjustment of capacity utilization. Copyright 1989 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:bla:manch2:v:57:y:1989:i:1:p:34-57

Access Statistics for this article

More articles in The Manchester School of Economic & Social Studies from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().