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Walras-Keynes equilibria coordination and macroeconomics

Author

Listed:
  • DREZE, Jacques H.

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

Abstract

In decentralised market economies, supply-constrained equilibria may persist as coordination failures, sustained but not caused by price rigidities. This feature may be arbitrarily severe, even at prices com- patible with competitive equilibrium. The supply-constraints may originate in rational expectations. Some implications for macroeco- nomics are drawn. The possibility of coordination failures explains why organised labour may resist wage flexibility. These features are il- lustrated in elementary macroeconomic prototypes, like RBC or Barro- Grossman-Malinvaud prototypes.

Suggested Citation

  • DREZE, Jacques H., 1997. "Walras-Keynes equilibria coordination and macroeconomics," LIDAM Discussion Papers CORE 1997051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1997051
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1997.html
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    Citations

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    Cited by:

    1. Francesco Saraceno, 2003. "Wage Regimes, Accumulation and Finance Constraints: Keynesian Unemployment Revisited," Macroeconomics 0311007, University Library of Munich, Germany.
    2. Mario Amendola & Jean‐Luc Gaffard & Francesco Saraceno, 2004. "Wage Flexibility and Unemployment: The Keynesian Perspective Revisited," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 654-674, November.
    3. Cockx, Bart, 1999. "The Design of Active Labour Market Policies. What Matters and What Doesn't ?," LIDAM Discussion Papers IRES 1999035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Fagnart, Jean-Francois & Pierrard, O. & Sneessens, Henri R., 2007. "Microeconomic uncertainty and macroeconomic indeterminacy," European Economic Review, Elsevier, vol. 51(6), pages 1564-1588, August.
    5. repec:spo:wpecon:info:hdl:2441/10287 is not listed on IDEAS
    6. Sneessens, Henri R., 1998. "Technological Bias and Unemployment: A Macroeconomic Perspective," LIDAM Discussion Papers IRES 1999024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Aug 1999.
    7. repec:spo:wpmain:info:hdl:2441/6762 is not listed on IDEAS
    8. Babenko, R. & Talman, A.J.J., 2006. "Quantity Constrained General Equilibrium," Discussion Paper 2006-125, Tilburg University, Center for Economic Research.
    9. repec:spo:wpmain:info:hdl:2441/10287 is not listed on IDEAS
    10. O. Scaillet, 2001. "Density Estimation Using Inverse and Reciprocal Inverse Gaussian Kernels," Thema Working Papers 2001-24, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    11. DREZE, Jacques H. & DURRE, Alain & SNEESSENS, Henri R., 2000. "Investment stimulation, with some reference to housing," LIDAM Reprints CORE 1483, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Jacques Drèze, 2001. "On the Macroeconomics of Uncertainty and Incomplete Markets," International Economic Association Series, in: Jacques Drèze (ed.), Advances in Macroeconomic Theory, chapter 3, pages 30-55, Palgrave Macmillan.
    13. repec:spo:wpecon:info:hdl:2441/6762 is not listed on IDEAS
    14. Bruinshoofd, W.A. & Letterie, W.A., 2001. "Comovement of sales, retention practice and financing constraints in Dutch manufacturing," Research Memorandum 003, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    15. Shadman-Mehta, Fatemeh & Sneessens, Henri R., 1998. "Demand-Supply Interactions and Unemployment Dynamics: Can there be Path Dependency ? The Case of Belgium, 1955-1994," LIDAM Discussion Papers IRES 1998017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    16. Jacques H. Drèze & P. Jean‐Jacques Herings, 2008. "Kinky perceived demand curves and Keynes–Negishi equilibria," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(2), pages 207-246, June.

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    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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