Simultaneous Price-Quantity Adjustment in the Presence of Spillovers Across Markets

This paper analyses the implications of simultaneous output, price and wage adjustment at finite rates. Firms use a Marshallian-type output adjustment which uses available information about notional magnitudes. With this adjustment structure, the Walrasian equilibrium is globally stable. This result is compared to the formulation which excludes the forces of motion on the regime boundaries.

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Year of publication:	1984
Authors:	McCurdy, Thomas H. ; Yannelis, Demetrius C.
Institutions:	Economics Department, Queen's University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	28 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005688469