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Price Dynamics in Equilibrium Models

The Search for Equilibrium and the Emergence of Endogenous Fluctuations

  • Jan Tuinstra

Part of the Advances in Computational Economics book series (AICE, volume 16)

Table of contents

  1. Front Matter
    Pages i-xiv
  2. Jan Tuinstra
    Pages 1-15
  3. Jan Tuinstra
    Pages 17-64
  4. Jan Tuinstra
    Pages 91-124
  5. Back Matter
    Pages 219-232

About this book

Introduction

A long-standing unsolved problem in economic theory is how economic equilibria are attained. Price Dynamics in Equilibrium Models: The Search for Equilibrium and the Emergence of Endogenous Fluctuations considers a number of adjustment processes in different economic models and investigates their dynamical behaviour. Two important themes arising in this context are `bounded rationality' and `nonlinear dynamics'.
Important sub-themes of the book are the following: how do boundedly rational agents interact with their environment and does this interaction in some sense lead to rational outcomes (which may or may not correspond to equilibria)? The second sub-theme deals with the consequences of the nonlinear dynamical nature of many adjustment processes. The results presented in this volume indicate that endogenous fluctuations are the rule rather than the exception in the search for equilibrium.
The book uses the theory of nonlinear dynamics to analyze the dynamics of the different economic models. Due to the complexity of most of the models, an important role is played by computational methods. In particular, at regular instances the models are analyzed by numerical simulations and some computer-assisted proofs are provided. It also covers a wide range of dynamical models from economic theory. Most of these models merge the theory of nonlinear economic dynamics with the theory of bounded rationality. The book is written for anyone with an interest in economic theory in general and bounded rationality and endogenous fluctuations in particular. It is entirely self-contained and accessible to readers with only a limited knowledge of economic theory.

Keywords

Monopol agents bounded rationality computer-assisted proof economic dynamics equilibrium nonlinear dynamics simulations

Authors and affiliations

  • Jan Tuinstra
    • 1
  1. 1.University of AmsterdamAmsterdamThe Netherlands

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4615-1661-3
  • Copyright Information Kluwer Academic Publishers 2001
  • Publisher Name Springer, Boston, MA
  • eBook Packages Springer Book Archive
  • Print ISBN 978-1-4613-5665-3
  • Online ISBN 978-1-4615-1661-3
  • Series Print ISSN 0929-130X
  • Buy this book on publisher's site