The transition from a Dreze equilibrium to a Walresian equilibrium

Article Abstract:

Analysis of the Dreze equilibrium reveals that the process may reach a Walresian equilibrium under standard assumptions on the primitive concepts of the economy and a non-degeneratie condition. The study takes into consideration an economy facing price rigidities and uses standard assumptions of the economy under non-degenerative conditions. In a market where either demand or supply is rationed, the process is shows to to a fixed price equilibrium and that this equilibrium, in turn, converges to a Walresian equilibrium in the long run.

Research and Development in the Physical, Engineering, and Life Sciences, Statistics, Markets (Economics), Statistics (Mathematics), Walrasian model, Mathematical statistics

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Equilibrium adjustment of disequilibrium prices

Article Abstract:

Equilibrium adjustment of disequilibrium prices begins with a small equilibrium with a low enough price level and thorough demand allocation on all markets. The real process starts with the increase in the price level and the fixation of all relative prices of non-numeraire goods. Rationing strategies are regulated to keep the balance in the market. The procedure will allow for a downward price adjustment of unrationed non-numeraire goods and will eventually reach a Walrasian equilibrium as a long-term effect.

Equilibrium (Economics), Economic stabilization

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A globally convergent price adjustment process for exchange economies

Article Abstract:

A globally convergent price adjustment process was developed for use on arbitrary exchange economies. The process begins at an arbitrary price vector and ends with an equilibrium price vector for arbitrary exchange economies. It involves increasing and decreasing the initial price of commodities with greatest excess demand and greatest excess supply, respectively.

Pricing, Supply and demand

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