Disequilibrium Foundations of Equilibrium Economics

Disequilibrium Foundations of Equilibrium Economics
Author :
Publisher :
Total Pages : 236
Release :
ISBN-10 : 0521242649
ISBN-13 : 9780521242646
Rating : 4/5 (49 Downloads)

Book Synopsis Disequilibrium Foundations of Equilibrium Economics by : Franklin M. Fisher

Download or read book Disequilibrium Foundations of Equilibrium Economics written by Franklin M. Fisher and published by . This book was released on 1983 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: The most common mode of analysis in economic theory is to assume equilibrium. Yet, without a proper theory of how economies behave in disequilibrium, there is no foundation for such a practice. The necessary step in proposing a foundation is the formulation of a theory of stability, and in this 1984 book, Professor Fisher is primarily concerned with this subject, although disequilibrium behavior itself is analyzed. The author first undertakes a review of the existing literature on the stability of general equilibrium. He then proposes a more satisfactory general model in which agents realize their state of disequilibrium and act on arbitrage opportunities. The interrelated topics of the role of money, the nature of quantity constraints, and the optimal behaviour of arbitraging agents are extensively treated.


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