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Walras-Keynes equilibria coordination and macroeconomics

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  • DRÈZE, J. H.

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.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Drèze, J. H., 1997. "Walras-Keynes equilibria coordination and macroeconomics," LIDAM Reprints CORE 1309, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1309
    DOI: 10.1016/S0014-2921(97)00085-8
    Note: In : European Economic Review, 41, 1735-1762, 1997
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    Cited by:

    1. 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.
    2. Babenko, R. & Talman, A.J.J., 2006. "Quantity Constrained General Equilibrium," Other publications TiSEM 393bf7c1-3045-4a3b-b3c3-5, Tilburg University, School of Economics and Management.
    3. repec:spo:wpmain:info:hdl:2441/10287 is not listed on IDEAS
    4. 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.
    5. Francesco Saraceno, 2004. "Wage Regimes, Accumulation and Finance Constraints : Keynesian Unemployment Revisited," SciencePo Working papers Main hal-01065470, HAL.
    6. O. Scaillet, 2001. "Density Estimation Using Inverse and Reciprocal Inverse Gaussian Kernels," THEMA Working Papers 2001-24, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    7. 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.
    8. 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).
    9. Francesco Saraceno, 2003. "Wage Regimes, Accumulation and Finance Constraints: Keynesian Unemployment Revisited," Macroeconomics 0311007, University Library of Munich, Germany.
    10. 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).
    11. repec:hal:wpspec:info:hdl:2441/6762 is not listed on IDEAS
    12. 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.
    13. repec:hal:spmain:info:hdl:2441/10287 is not listed on IDEAS
    14. repec:spo:wpecon:info:hdl:2441/6762 is not listed on IDEAS
    15. repec:spo:wpecon:info:hdl:2441/10287 is not listed on IDEAS
    16. 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.
    17. repec:hal:spmain:info:hdl:2441/6762 is not listed on IDEAS
    18. repec:spo:wpmain:info:hdl:2441/6762 is not listed on IDEAS
    19. 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).
    20. repec:hal:wpspec:info:hdl:2441/10287 is not listed on IDEAS
    21. 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).

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