A Note on "Stability of Tâtonnement Processes of Short Period Equilibria with Rational Expectations"
AbstractIn Hens (1997), a new adjustment process is proposed for a setting with reopening spot and asset markets. He argues by means of an intemporal variant of Scarf's example that this process is more stable than the other processes, although in general it might be more stable or less stable. This note gives further evidence showing that Hens's process is indeed more stable. The results contradict some of the arguments of Hens (1997), which are corrected.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1997-110.
Date of creation: 1997
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Tatonnement; stability; rational expectations; general equilibrium;
Other versions of this item:
- Herings, P. Jean-Jacques, 1999. "A note on 'stability of tatonnement processes of short period equilibria with rational expectations'," Journal of Mathematical Economics, Elsevier, vol. 32(3), pages 333-338, November.
- Herings, P.J.J., 1999. "A note on "stability of tatonnement processes of short period equilibria with rational expectations"," Open Access publications from Maastricht University urn:nbn:nl:ui:27-5879, Maastricht University.
- D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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- Yves Balasko, 1993.
"The Expectational Stability of Walrasian Equilibria,"
Research Papers by the Department of Economics, University of Geneva
93.09, Département des Sciences Économiques, Université de Genève.
- Balasko, Yves, 1994. "The expectational stability of Walrasian equilibria," Journal of Mathematical Economics, Elsevier, vol. 23(2), pages 179-203, March.
- Magill, Michael & Shafer, Wayne, 1991. "Incomplete markets," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 30, pages 1523-1614 Elsevier.
- Hens, Thorsten, 1997. "Stability of tatonnement processes of short period equilibria with rational expectations," Journal of Mathematical Economics, Elsevier, vol. 28(1), pages 41-67, August.
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