The Stability of a Macroeconomic System with Quantity Constraints
by Paul Heuvel
1. Introduction -- 1.1. Scope -- 1.2. Relevant economic notions -- 1.3. Walras Equilibria -- 1.4. Non-Walrasian Equilibria -- 1.5. Dynamics and Stability -- 1.6. Outline -- 2. Mathematical Results in Optimization and Stability -- 2.1. Introduction and notation -- 2.2. Some concepts in analysis and optimization -- 2.3. Definitions and properties concerning stability -- 2.4. Stability of piecewise differentiable systems -- 3. Static Model -- 3.1. Introduction -- 3.2. Description of the basic model -- 3.3. Voluntary trades -- 3.4. Properties of demand and supply functions -- 3.5. Non-Walrasian Equilibrium states -- 3.6. Locations in the parameter space -- 3.7. Extensions -- Appendix: Proofs with respect to Sections 3.2-3.4 -- 4. Dynamic Model -- 4.1. Introduction -- 4.2. Formulation of a dynamic system -- 4.3. Analysis of the adjustment functions -- 4.4. Walras Equilibria in the dynamic model -- 4.5. Locations in the parameter space -- 4.6. The BGM-model -- 4.7. Extensions -- 5. Stability Properties of the Different Types of Equilibria -- 5.1. Possible types of equilibria in the dynamic model -- 5.2. Walras Equilibria in IR2 -- 5.3. Stability of other equilibria in IR2 -- 5.4. Walras Equilibria in IR3 -- 5.5. Stability of other equilibria in IR3 -- 6. Conclusions -- 6.1. General concluding remarks -- 6.2. Conclusions concerning stability -- 6.3. Epilogue -- List of Symbols -- List of Assumptions -- References.
