On the Dynamics of Supply-Constrained Equilibria.

The paper defines a simple tatonnement process of adjustments in prices and quantities, where excess demand results in nominal price increases and excess supply results in quantity rationing of supply at unchanged prices. Under reasonable assumptions, the process converges to a supply-constrained equilibrium. The result contributes to our understanding of how supply-constrained equilibria come about.

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Year of publication:	1999
Authors:	Dreze, J.
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	GENERAL EQUILIBRIUM \| PRICES \| DYNAMIC ANALYSIS

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Series:	Papers.
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	D50 - General Equilibrium and Disequilibrium. General ; E30 - Prices, Business Fluctuations, and Cycles. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005779410