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Disequilibrium Foundations of Equilibrium Economics by Franklin M. Fisher, Andrew Chesher, Matthew Jackson

Disequilibrium Foundations of Equilibrium Economics

by Franklin M. Fisher , Andrew Chesher , Matthew Jackson
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Book cover type: Paperback
  • ISBN13: 9780521378567
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Cambridge University Press
  • Publisher Imprint: Cambridge University Press
  • Publication Date:
  • Pages: 252
  • Original Price: GBP 54.0
  • Language: English
  • Edition: Revised
  • Item Weight: 372 grams
  • BISAC Subject(s): Economics / Macroeconomics

The most common mode of analysis in economic theory is to assume equilibrium. Yet, without a proper theory of how economies behave in disequilibrium, there is no foundation for such a practice. The first step in such a foundation is a theory of stability, and this book is primarily concerned with that subject. The author first reviews the older literature on the stability of general equilibrium and goes on to consider a more satisfactory general model in which agents realize that they are in disequilibrium and act on arbitrage opportunities. Topics explored along the way include optimal arbitrage behavior, the relation of perceived monopoly power to quantity constraints, and the role of money.

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