In Chapter 5 we studied questions concerning the existence and properties of steady-state equilibria in neoclassical economies, in particular, concerning the sensitivity of steady-state equilibria to changes in parameters. Conspicuously lacking was any discussion of the nonsteady-state behavior of such economies and, more specifically, of the dynamic stability of such equilibria. To these matters we now turn.
KeywordsGlobal Stability Commodity Price Market Equilibrium Production Possibility Price Vector
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