Ricardo And Lemke
We study the economic mechanism which sustains the substitution of a marginal method for another when demand increases, in the presence of scarce resources. In those Ricardian dynamics, it is shown that the outgoing method is determined by the quantity side of the problem, the incoming method by the value side. That discrepancy explains both the possible failure of the dynamics and the possible occurrence of multiple equilibria. Conditions for existence, uniqueness and the working of the dynamics are stated. A parallel is drawn with the parametric Lemke algorithm used to solve linear complementarity problems.
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- Salvadori, Neri, 1986. "Land and Choice of Techniques within the Sraffa Framework," Australian Economic Papers, Wiley Blackwell, vol. 25(46), pages 94-105, June.
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"On the Uniqueness of Square Cost-Minimizing Techniques,"
The Manchester School of Economic & Social Studies,
University of Manchester, vol. 63(2), pages 145-66, June.
- ERREYGERS, Guido, 1992. "On the uniqueness of square cost-minimizing techniques," SESO Working Papers 1992009, University of Antwerp, Faculty of Applied Economics.
- Christian Bidard & Guido Erreygers, 1998. "The number and type of long-term equilibria," Journal of Economics, Springer, vol. 67(2), pages 181-205, June.
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