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Dynamic interaction models of economic equilibrium

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Author Info

  • Evstigneev, Igor
  • Taksar, Michael

Abstract

The paper develops a stochastic dynamic model of economic equilibrium with locally interacting agents. The main focus of the study is on the modeling of market interactions - those arising in connection with commodity exchange and regulated by price mechanisms. The mathematical framework is a control theory for random vector fields on directed graphs. The graphs involved serve to describe the spatio-temporal structure of commodity flows in the system. The main results are concerned with the existence, uniqueness and stability of stochastic dynamic equilibria.

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File URL: http://www.sciencedirect.com/science/article/B6V85-4SMDYWD-4/2/866e9b9dd89e93076d3a8e51bd72c7b1
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 33 (2009)
Issue (Month): 1 (January)
Pages: 166-182

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Handle: RePEc:eee:dyncon:v:33:y:2009:i:1:p:166-182

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Economies with locally interacting agents Market interactions Stochastic equilibrium dynamics Random fields on directed structures Stationary (invariant) equilibria;

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References

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Cited by:
  1. Barunik, J. & Vosvrda, M., 2009. "Can a stochastic cusp catastrophe model explain stock market crashes?," Journal of Economic Dynamics and Control, Elsevier, vol. 33(10), pages 1824-1836, October.

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