IDEAS home Printed from
   My bibliography  Save this article

The AD-AS Model and Its Solutions: Some New Results in a Disequilibrium Perspective


  • Chirco, Alessandra
  • Colombo, Caterina


This paper discusses the logical foundation and the solutions of a microfounded aggregate demand - aggregate supply model under the disequilibrium hypothesis. We first show that a) the latter hypothesis is the only one ensuring model consistent expectations and that b) price predetermination, more than price flexibility, should be embodied in an AD-AS framework. Then we develop a full AD-AS scheme, both under excess supply and excess demand for labor. We prove that in the latter case no well defined equilibrium exists. Finally, we discuss stability and perform some comparative statics exercises. Copyright 1996 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Chirco, Alessandra & Colombo, Caterina, 1996. "The AD-AS Model and Its Solutions: Some New Results in a Disequilibrium Perspective," Australian Economic Papers, Wiley Blackwell, vol. 35(67), pages 263-281, December.
  • Handle: RePEc:bla:ausecp:v:35:y:1996:i:67:p:263-81

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:35:y:1996:i:67:p:263-81. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.