On the dynamics of suppply-constrained equilibria
(1999)
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- Authors
- Abstract
- 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.
- Affiliations
Citations
Dreze, J. (1999). On the dynamics of suppply-constrained equilibria (CORE Discussion Papers 1999/04). https://hdl.handle.net/2078.5/35798