Skip to main content
SpringerLink
Log in

Hicksian Themes on Stability

  • Chapter
Value and Capital: Fifty Years Later

Part of the book series: International Economic Association Series ((IEA))

Abstract

Value and Capital (1939) provided the impetus for much of the post-war literature on stability. It was there, as far as I know, that the ‘law of supply and demand’ was, for the first time, studied in a general equilibrium setting. In a pure exchange economy Hicks defined ‘perfect stability’ by the following conditions:

A rise in the price of any commodity must make the supply of that commodity exceed the demand (a) if all other prices are given, (b) if some other prices are adjusted so as to preserve equality between demand and supply in their respective markets (c) if all other prices are so adjusted. (Value and Capital p. 248).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 74.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Arrow, K. J. (1959) ‘Towards a Theory of Price Adjustment’ in A. Abramo- vitz (ed.) The Allocation of Economic Resources (Stanford: Stanford University Press).

    Google Scholar 

  • Arrow, K. J. and Hahn, F. H. (1971) General Competitive Analysis (Amster dam: North Holland).

    Google Scholar 

  • Bray, M. (1982) ‘Learning Expectations and the Stability of Rational Expec tations,’ Journal of Economic Theory, vol. 26.

    Google Scholar 

  • Bray, M. and Savin, N. (1986) ‘Rational Expectations Equilibria, Learning and Model Specification,’ Econometrica, vol. 54, pp. 1129–60.

    Article  Google Scholar 

  • Debreu, G. (1970) ‘Economies with Finite Set of Equilibria,’ Econometrica, vol. 38, pp. 387–92.

    Article  Google Scholar 

  • Drèze, J. (1975) ‘Existence of Exchange Equilibrium under Price Rigidities,’ International Economic Review, vol. 16.

    Google Scholar 

  • Fisher, F. M. (1983) Disequilibrium Foundations of Equilibrium Economics (Cambridge: Cambridge University Press).

    Book  Google Scholar 

  • Fisher, M. E. and Fuller, A. Y. (1958) ‘On the Stabilization of Matrices and the Convergence of Linear Iterative Processes,’ Proceedings of the Cam bridge Philosophical Society, vol. 54, pp. 417–25.

    Article  Google Scholar 

  • Fudenberg, D. and Kreps, D. (1988) ‘A Theory of Learning, Experimentation, and Equilibrium in Games,’ mimeo.

    Google Scholar 

  • Gale, D. (1986) ‘Bargaining and Competition,’ Parts I and II, Econometrica, vol. 54, no 4, pp. 785–818.

    Google Scholar 

  • Geanakoplos, J. and Mas-Colell, A. (1985) ‘Real Indeterminacy with Financial Assets,’ mimeo.

    Google Scholar 

  • Grandmont, J. M. (1983) Money and Value (Cambridge: Cambridge University Press).

    Book  Google Scholar 

  • Grandmont, J. M., (1988) paper presented to Stanford IMSSS workshop.

    Google Scholar 

  • Hahn, F. (1952) ‘Expectations and Equilibrium,’ Economic Journal, vol. 62, pp. 802–19.

    Article  Google Scholar 

  • Hahn, F. (1963) ‘On the Disequilibrium Behaviour of a Multisectoral Growth Model,’ Economic Journal, vol. 73, pp. 442–57.

    Article  Google Scholar 

  • Hahn, F. and Negishi, T. (1962) ‘A Theorem of Non-Tâtonnement Stability,’ Econometrica, vol. 30, pp. 463–9.

    Article  Google Scholar 

  • Hicks, J. R. (1939) Value and Capital (Oxford: Clarendon Press).

    Google Scholar 

  • Hurwicz. L., Radner, R. and Reiter, S. (1975) ‘A Stochastic Decentralized Resource Allocation Process, I and II,’ Econometrica, vol. 43, pp. 187–221, 363–93.

    Google Scholar 

  • McFadden, D. (1968) ‘On Hicksian Stability’ in J. N. Wolfe (ed.) Value, Capital and Growth (Edinburgh: Edinburgh University Press).

    Google Scholar 

  • Radner, R. (1972) ‘Existence of Equilibrium of Plans, Prices and Price Expectations in a Sequence of Markets,’ Econometrica, vol. 40, no 2, pp. 284–304.

    Google Scholar 

  • Radner, R. (1979) ‘Rational Expectations Equilibrium: Generic Existence and the Information Revealed by Prices,’ Econometrica, vol. 47, pp. 655–78.

    Article  Google Scholar 

  • Rothschild, M. (1974) ‘A Two-armed Bandit Theory of Market Pricing,’ Journal of Political Economy, vol. 9.

    Google Scholar 

  • Samuelson, P. A. (1941, 1942) ‘The Stability of Equilibrium,’ Econometrica, vol. 9, pp. 97–120 and vol. 10, pp. 1–25.

    Google Scholar 

  • Uzawa, H. (1962) ‘On the Stability of Edgeworth’s Barter Process,’ International Economic Review, vol. 3, pp. 218–32.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Cambridge University, UK

    Frank Hahn

Authors
  1. Frank Hahn
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Lionel W. McKenzie Stefano Zamagni

Copyright information

© 1991 International Economic Association

About this chapter

Cite this chapter

Hahn, F. (1991). Hicksian Themes on Stability. In: McKenzie, L.W., Zamagni, S. (eds) Value and Capital: Fifty Years Later. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11029-2_4

Download citation

Publish with us

Policies and ethics

Search

Navigation