The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Intertemporal Equilibrium and Efficiency

  • E. Malinvaud
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1110

Abstract

A clear formalization of intertemporal equilibrium not only aids the fundamental conceptualization of economic activity but should also lead to comparative statics properties, which, dealing with intertemporal equilibria, have also been called ‘comparative dynamics properties’. Particular importance has been given to the question of knowing how the interest rate changes from one stationary equilibrium to another when some specific change is being brought to its exogenous determinants. The theory of the optimum allocation of resources can likewise be transposed to the intertemporal framework. Applications of these properties may give insights on the evolution of prices through time.

Keywords

Austrian economics Capital accumulation Capital theory Comparative statics Competitive temporary equilibria Decision criteria Exhaustible resources Golden rule Impatience Implicit contracts Information aggregation Information exchange Intertemporal competitive equilibrium Intertemporal decisions Intertemporal efficiency Intertemporal equilibrium Irreversibilities Joint production Keynesian consumption function Labour market contracts Overcapitalization Overlapping generations models Pareto efficiency Period of production Production possibility set Productivity of investment Proportional growth Rate of interest Rationing Reswitching of technique Samuelson–Leontief technology Shadow discount rate Stationary equilibrium Temporary equilibrium Trade cycle Unbounded horizons Uncertainty 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • E. Malinvaud
    • 1
  1. 1.