The New Palgrave Dictionary of Economics

Living Edition
| Editors: Palgrave Macmillan

Adjustment Processes and Stability

  • Franklin M. Fisher
Living reference work entry
DOI: https://doi.org/10.1057/978-1-349-95121-5_140-1

Abstract

Economic theory is pre-eminently a matter of equilibrium analysis. In particular, the centrepiece of the subject – general equilibrium theory – deals with the existence and efficiency properties of competitive equilibrium. Nor is this only an abstract matter. The principal policy insight of economics – that a competitive price system produces desirable results and that government interference will generally lead to an inefficient allocation of resources – rests on the intimate connections between competitive equilibrium and Pareto efficiency.

Keywords

Adjustment Process Excess Demand Competitive Equilibrium Arbitrage Opportunity Pareto Efficiency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

References

  1. Arrow, K.J., and F.H. Hahn. 1971. General competitive analysis. San Francisco/Edinburgh: Holden-Day/Oliver & Boyd.Google Scholar
  2. Clower, R.W. 1965. The Keynesian counterrevolution: A theoretical appraisal. In The theory of interest rates, ed. F.H. Hahn and F.P.R. Brechling. London/New York: Macmillan/St. Martin’s Press.Google Scholar
  3. Edgeworth, F.Y. 1881. Mathematical psychics, Reprinted. New York: Augustus M. Kelley, 1967.Google Scholar
  4. Fisher, F.M. 1974. The Hahn process with firms but no production. Econometrica 42: 471–486.CrossRefGoogle Scholar
  5. Fisher, F.M. 1976. A non-tâtonnement model with production and consumption. Econometrica 44: 907–938.CrossRefGoogle Scholar
  6. Fisher, F.M. 1983. Disequilibrium foundations of equilibrium economics. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  7. Hahn, F.H. 1961. A stable adjustment process for a competitive economy. Review of Economic Studies 29: 62–65.CrossRefGoogle Scholar
  8. Hahn, F.H. 1962. On the stability of pure exchange equilibrium. International Economic Review 3: 206–214.CrossRefGoogle Scholar
  9. Hahn, F.H., and T. Negishi. 1962. A theorem on non-tâtonnement stability. Econometrica 30: 463–469.CrossRefGoogle Scholar
  10. Scarf, H. 1960. Some examples of global instability of the competitive equilibrium. International Economic Review 1: 157–172.CrossRefGoogle Scholar
  11. Schumpeter, J. 1911. The theory of economic development. 4th printing of English trans. Cambridge, MA: Harvard University Press, 1951.Google Scholar
  12. Uzawa, H. 1962. On the stability of Edgeworth’s barter process. International Economic Review 3: 218–232.CrossRefGoogle Scholar

Copyright information

© The Author(s) 1987

Authors and Affiliations

  • Franklin M. Fisher
    • 1
  1. 1.