Dynamic structure of disequilibrium models
Lu, M. and Qin, D. (1998) Dynamic structure of disequilibrium models. Economics of Planning, 31, (1), 15-27.
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Description/Abstract
This paper investigates the dynamic structure of a standard disequilibrium model. By assuming that the model variables are non-stationary time series with respect to ample empirical evidence, we find the following: 1) It is the exogenous variables rather than the price adjustment process that form the real adjustment force of the model; 2) Quantity disequilibrium and price disequilibrium are isomeric in the model, and follow a weakly stationary process when all the variables are I (1) nonstationary; 3) The disequilibrium process has a none-zero mean when the weakly exogenous variables of the demand equation do not cointegrate with those of the supply equation, corresponding to certain `chronic disequilibrium' phenomena; 4) The isomerism between quantity disequilibrium and price changes makes it unnecessary to lean on the `min condition' to characterise disequilibrium.
| Item Type: | Article |
|---|---|
| ISSNs: | 0013-0451 (print) |
| Related URLs: | |
| Keywords: | disequilibrium, min condition, nonstationarity, centrally planned economy |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HA Statistics |
| Divisions: | University Structure - Pre August 2011 > School of Social Sciences > Economics |
| Item ID: | 32996 |
| Date Deposited: | 21 Jun 2007 |
| Last Modified: | 02 Mar 2012 13:06 |
| Contributors: | Lu, M. (Author) Qin, D. (Author) |
| Date: | 1998 |
| Status: | Published |
| Contact Email Address: | ml@soton.ac.uk |
| URI: | http://eprints.soton.ac.uk/id/eprint/32996 |
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