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The natural projection approach to production and uncertainty

  • Stiefenhofer, Pascal
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    The paper generalizes the natural projection approach introduced by Balasko (1988) for the study of the qualitative equilibrium structure of exchange economies to a two period private ownership production model with uncertainty. It shows that long run equilibrium properties of the production model are those of the pure exchange economy with production adjusted demand functions. Associated with every long run equilibrium there exist a finite, odd number of short run equilibria.

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    File URL: http://www.economics-ejournal.org/economics/discussionpapers/2011-10
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    File URL: http://econstor.eu/bitstream/10419/45637/1/657916404.pdf
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    Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2011-10.

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    Date of creation: 2011
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    Handle: RePEc:zbw:ifwedp:201110
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