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...

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Published in:Review of Economic Studies Vol. 47; no. 4; pp. 813 - 816
Main Authors: Kagawa, Akio, Kuga, Kiyoshi
Format: Article
Published: Oxford University Press / USA Jul80
Subjects:
Online Access:View this record in EBSCOhost
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        atl: On Professor Hahn's Tatonnement Stability Theorem: Comment and Example.
      aug:
        au:
          Kagawa, Akio
          Kuga, Kiyoshi
        affil:
          Tokyo College of Economics
          Osaka University
      su:
        Economic equilibrium
        Economics
        Statics & dynamics (Social sciences)
        Supply & demand
        Economic stabilization
        Economic demand
        Demand function
      sug:
        subj:
          Economic equilibrium
          Economics
          Statics & dynamics (Social sciences)
          Supply & demand
          Economic stabilization
          Economic demand
          Demand function
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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