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Inventories and the Fixprice Method

In: Value and Capital: Fifty Years Later

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  • Guy Laroque

    (Institut National De La Statistique Et Des Etudes Economiques)

Abstract

Value and Capital has laid the modern foundations of dynamic economics. It has had a long-lasting influence on the way economists think of the evolution of the economic system: a sequence of stable temporary (competitive) equilibria. In the current period, given initial stocks, and the way economic agents form their expectations, a stable temporary equilibrium is established. Here stability means that ‘a slight movement away from the equilibrium position should set up forces tending to restore equilibrium’ (p. 62). Then the initial condi tions are modified for the next period (stocks accumulate or decumu late, tastes change, expectations are revised) and this creates the dynamics of the economy.

Suggested Citation

  • Guy Laroque, 1991. "Inventories and the Fixprice Method," International Economic Association Series, in: Lionel W. McKenzie & Stefano Zamagni (ed.), Value and Capital: Fifty Years Later, chapter 8, pages 205-231, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-11029-2_14
    DOI: 10.1007/978-1-349-11029-2_14
    as

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    References listed on IDEAS

    as
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