Document Type
Discussion Paper
Publication Date
11-1-1982
CFDP Number
650
CFDP Pages
22
Abstract
The paper establishes conditions for the existence of a set of prices which are stable and at which markets do not clear, providing a rigorous foundation for the existence of fixed-price equilibria via the macroeconomics of increasing returns. It analyzes a Walrasian price adjustment process for a general equilibrium economy with economies of scale in production.
Recommended Citation
Heal, Geoffrey M., "Stable Disequilibrium Prices: Macroeconomics and Increasing Returns I" (1982). Cowles Foundation Discussion Papers. 884.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/884