The LeChatelier principle: the long and the short of it

Wing Suen, Paul Tseng () and Eugene Silberberg ()
Additional contact information
Paul Tseng: Department of Mathematics, University of Washington, Seattle, WA 98195, USA
Eugene Silberberg: Department of Economics, University of Washington, Seattle, WA 98195, USA

Economic Theory, 2000, vol. 16, issue 2, 476 pages

Abstract: Using ordinary calculus techniques, we investigate the conditions under which LeChatelier effects are signable for finite changes in parameter values. We show, for example, that the short run demand for a factor is always less responsive to price changes than the long run demand, provided that the factor of production and the fixed factor do not switch from being substitutes to being complements (or vice versa) over the relevant range of the price change. The absence of a sign change in the complementarity/substitutability relation holds under conditions that are considerably more general than supermodularity of the production function.

Keywords: Comparative statics; LeChatelier principle. (search for similar items in EconPapers)
Date: 2000-07-14
Note: Received: June 10, 1999; revised version: June 24, 1999
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://link.springer.de/link/service/journals/00199/papers/0016002/00160471.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

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:spr:joecth:v:16:y:2000:i:2:p:471-476

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().