Disequilibrium goods market model for the U.S.A.: a disaggregated approach.

An approach known as smoothing by aggregation is paired with data for the period 1946-91 to show that the aggregate U.S. goods market is a disequilibrium market. Therefore, the Keynesian, rather than the new classical equilibrium framework, is more appropriate for analyzing the market. It is also...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 61; pp. 415 - 426
Autor principal: Bhaskara Rao, B.
Formato: Artículo
Publicado: Southern Economic Association October 1994
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: October 1994
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        atl: Disequilibrium goods market model for the U.S.A.: a disaggregated approach.
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        au: Bhaskara Rao, B.
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        Aggregation (Statistics)
        Mathematical models of supply & demand
        Economic equilibrium
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          Aggregation (Statistics)
          Mathematical models of supply & demand
          Economic equilibrium
      ab: An approach known as smoothing by aggregation is paired with data for the period 1946-91 to show that the aggregate U.S. goods market is a disequilibrium market. Therefore, the Keynesian, rather than the new classical equilibrium framework, is more appropriate for analyzing the market. It is also found that all the micro markets are unlikely to be in excess demand or excess supply states for a given time period, so the variance of excess demand across the micro markets is an important explanatory variable for output and price levels. In addition, aggregate supply is shown to be elastic in the short run, and the inflation rate is very sluggish, so fully anticipated exclusionary policies will have real effects for a sustained period. The findings also have implications for the specification of the labor demand function.
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    language: English
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