Stability of tatonnement processes of short period equilibria with rational expectations

Article Abstract:

A model, based on short-period equilibria and locally asymptotically stable process has been used to analyze future prices and forecast hypothesis. Through the use of the model, a direct proportionality relationship has been affirmed to exist between current period prices and current period excess demand. It was also concluded that perfect foresight hypothesis tends to influence the formation of future prices. The analysis has been differentiated from tatonnement processes in terms of contingent contract prices and spot market process.

Forecasting, Pricing Policy, Pricing, Economic forecasting, Business forecasting

---

Nash competitive equilibria and two-period fund separation

Article Abstract:

A simple asset market model, Nash competitive equilibrium (NCE), in which competitive and strategic behavior is analyzed simultaneously, is explained. Due to the inclusion of derivatives in the NCE model there is a rise in the strategic aspects, which results differences in the strategic behavior from the competitive behavior even for utility functions leading to two-fund separation.

United States, Models, Economic theory

---

A note on the 'stability of tatonnement processes of short period equilibria with rational expectations.'

Article Abstract:

Issues related to equilibria over short periods are examined, where rational expectations apply. The stability of adjustment processes is also analyzed.

Similar abstracts:

• Abstracts: Continuous representability of homothetic preferences by means of homogeneous utility functions. Non-time additive utility optimization-the case of certainty
• Abstracts: On the fair division of a heterogeneous commodity. Existence of equilibrium with nonconvexities and finitely many agents
• Abstracts: Finite-sample properties of tests for equal forecast accuracy. Can out-of-sample forecast comparisons help prevent overfitting?
• Abstracts: Demand aggregation under structural stability. A functional central limit theorem for equilibrium paths of economic dynamics

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.