On Professor Hahn's Tatonnement Stability Theorem: Comment and Example.
Interest in stable tâtonnement adjustment processes has been reviving in connection with algorithms for finding fixed points (Scarf (1973)). The study done by Hahn (1961) is a pioneering work in this field. He shows the following: The Walrasian general equilibrium system admits a globally stable tât...
| Publicado en: | Review of Economic Studies Vol. 47; no. 4; pp. 813 - 816 |
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| Autores principales: | , |
| Formato: | Artículo |
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Oxford University Press / USA
Jul80
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Interest in stable tâtonnement adjustment processes has been reviving in connection with algorithms for finding fixed points (Scarf (1973)). The study done by Hahn (1961) is a pioneering work in this field. He shows the following: The Walrasian general equilibrium system admits a globally stable tâtonnement process under only mild restrictions on the form of excess demand functions, if the proportional rate of change in the price of any one commodity is supposed to be equal to the ratio of the excess demand for that commodity to its demand. Our purpose in this note is to examine his stability theorem. |
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