Abstract
The possibility that markets may not completely clear has long been recognized. Indeed, much of traditional macroeconomics is implicitly based on the assumption that some important markets in the economy do not equilibrate. Models in which agents may face explicit quantity constraints on their desired supplies or demands have come to be known as disequilibrium models. This name emphasizes that a full tâtonnement on prices has not been completed, so trades may occur at prices that are not Walrasian equilibrium ones. It is a slight misnomer, since an equilibrium concept, albeit non-Walrasian, can be defined within this framework (for an introduction and references, see Benassy (1982b)). We shall, however, throughout this book equate equilibrium with Walrasian market clearing and disequilibrium with quantity rationing.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsAuthor information
Authors and Affiliations
Rights and permissions
Copyright information
© 1987 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Rudebusch, G.D. (1987). Overview and Summary. In: The Estimation of Macroeconomic Disequilibrium Models with Regime Classification Information. Lecture Notes in Economics and Mathematical Systems, vol 288. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45625-1_1
Download citation
DOI: https://doi.org/10.1007/978-3-642-45625-1_1
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-17757-9
Online ISBN: 978-3-642-45625-1
eBook Packages: Springer Book Archive