We develop a theoretical model involving temporary equilibria with quantity rationing in each period and price adjustment between periods. The resulting dynamic system may present a variety of dynamic behaviors, ranging from the convergence to stationary or quasi-stationary states, to complex or even chaotic dynamics. In particular, our framework has the property of being able to endogenously allow for the characterization of persistent disequilibrium phenomena -- such us unemployment or deflation. It provides therefore for an ideal setup to investigate the effects and persistency of recessionary phases, and to study the effectiveness of different economic policies aimed at resolving them.

Colombo, L. V. A., Weinrich, G., Persistent Disequilibrium Dynamics and Economic Policy, in G.I. Bischi, C. C. A. L. G. (ed.), Nonlinear Dynamics in Economics, Finance and the Social Sciences, Springer, Berlin Heidelberg 2010: 229- 249 [http://hdl.handle.net/10807/25676]

Persistent Disequilibrium Dynamics and Economic Policy

Colombo, Luca Vittorio Angelo;Weinrich, Gerd
2010

Abstract

We develop a theoretical model involving temporary equilibria with quantity rationing in each period and price adjustment between periods. The resulting dynamic system may present a variety of dynamic behaviors, ranging from the convergence to stationary or quasi-stationary states, to complex or even chaotic dynamics. In particular, our framework has the property of being able to endogenously allow for the characterization of persistent disequilibrium phenomena -- such us unemployment or deflation. It provides therefore for an ideal setup to investigate the effects and persistency of recessionary phases, and to study the effectiveness of different economic policies aimed at resolving them.
2010
Inglese
Nonlinear Dynamics in Economics, Finance and the Social Sciences
978-3-642-04022-1
Colombo, L. V. A., Weinrich, G., Persistent Disequilibrium Dynamics and Economic Policy, in G.I. Bischi, C. C. A. L. G. (ed.), Nonlinear Dynamics in Economics, Finance and the Social Sciences, Springer, Berlin Heidelberg 2010: 229- 249 [http://hdl.handle.net/10807/25676]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/25676
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