The macroeconomics of disequilibrium

Duménil, Gérard; Lévy, Dominique

Duménil, Gérard; Lévy, Dominique (1987), The macroeconomics of disequilibrium, Journal of Economic Behavior and Organization, 8, 3, p. 377-395. http://dx.doi.org/10.1016/0167-2681(87)90051-5

Type

Article accepté pour publication ou publié

Date

1987

Journal name

Journal of Economic Behavior and Organization

Volume

Number

Publisher

Elsevier

Pages

377-395

Abstract (EN)

It is shown that it is possible to construct a disequilibrium microeconomics in which agents react to the evidence of disequilibrium (inventories, nonnormal ratio of capacity utilization, etc.). In a one good model, we describe the set of fixed points In addition to normal equilibrium, two stationary disequilibria also exist (or regimes of long-term disequilibrium): overheating and inferior states. The set of fixed points which are locally stable displays the shape of a pitchfork.

Subjects / Keywords

Equilibrium (Economics); disequilibrium

JEL

D50 - General
D03 - Behavioral Microeconomics: Underlying Principles
D23 - Organizational Behavior; Transaction Costs; Property Rights