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Expected Equilibrium and Fix-Price Equilibrium in a Simple Macroeconomic Model: Equivalence Theorems and Stability(*)

Published online by Cambridge University Press:  17 August 2016

Philippe Michel
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Abstract

The recent development of macroeconomic models with fixed prices and adjustment of quantities has shown the importance of considering the type of unemployment in the economy, since this determines the effects of economic policy decisions. The fundamental concept of this theory, namely fix-price equilibrium with quantity rationing, presents similarities with Walrasian equilibrium. Its interpretation is based on tatonnements on quantities instead of tatonnements on prices.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 48 , Issue 1 , 1982 , pp. 57 - 76
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1982 

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Footnotes

(*)

A first version of this paper was written while I was visiting the University of California, Berkeley, in April 1980. This revised version was written while I was visiting at C.O.R.E., Université Catholique de Louvain.

(**)

Université de Paris I, Centre de Mathématiques Economiques, 12, Place du Panthéon – 75005 Paris-France.

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