In some recent works on the dynamics of capitalistic competition Duménil and Lévy proposed two ways to overcome the problem of instability of long-run equilibrium in cross-dual models of gravitation: in the first one a different notion of rate of profit, the "realised" rate of profit is supposed to drive capitalists' investment decisions; in the second one the goal is pursued by introducing a direct adjustment of output in response to imbalances between demand and supply. In the present paper we argue that both these procedures rise a logical problem, concerning capitalists' behaviour and their information set, and we present a re-formulation of the model that avoids it.

Bellino, E., Convergence to Long-Run Equilibrium - On some Recent Variations of the Pure Cross-Dual Model, <<STRUCTURAL CHANGE AND ECONOMIC DYNAMICS>>, 1999; 10 (10): 225-237 [http://hdl.handle.net/10807/60677]

Convergence to Long-Run Equilibrium - On some Recent Variations of the Pure Cross-Dual Model

Bellino, Enrico
1999

Abstract

In some recent works on the dynamics of capitalistic competition Duménil and Lévy proposed two ways to overcome the problem of instability of long-run equilibrium in cross-dual models of gravitation: in the first one a different notion of rate of profit, the "realised" rate of profit is supposed to drive capitalists' investment decisions; in the second one the goal is pursued by introducing a direct adjustment of output in response to imbalances between demand and supply. In the present paper we argue that both these procedures rise a logical problem, concerning capitalists' behaviour and their information set, and we present a re-formulation of the model that avoids it.
eng
Bellino, E., Convergence to Long-Run Equilibrium - On some Recent Variations of the Pure Cross-Dual Model, <>, 1999; 10 (10): 225-237 [http://hdl.handle.net/10807/60677]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/60677
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