Two polar cases of dynamic stability: voluntary exchange and income redistribution

It is known that when voluntary exchange is permitted at disequilibrium, dynamic stability may fail because of lack of liquidity. In this paper it is shown that when the economy runs out of liquidity dynamic stability can still be restored by means of a planning procedure of redistributing personal incomes. Copyright Springer-Verlag Berlin/Heidelberg 2006

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Year of publication:	2006
Authors:	Abraham, Haim
Published in:	Economic Theory. - Springer. - Vol. 28.2006, 1, p. 213-219
Publisher:	Springer
Subject:	Planning procedure \| Stability \| Voluntary exchange

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005147363