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A Note on "Stability of Tâtonnement Processes of Short Period Equilibria with Rational Expectations"
Herings,P.J.J.
Herings,P.J.J.
Abstract
In Hens (1997), a new adjustment process is proposed for a setting with reopening spot and asset markets. He argues by means of an intemporal variant of Scarf's example that this process is more stable than the other processes, although in general it might be more stable or less stable. This note gives further evidence showing that Hens's process is indeed more stable. The results contradict some of the arguments of Hens (1997), which are corrected.
Description
Pagination: 5
Date
1997
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Publisher
Microeconomics
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110.pdf
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Keywords
Tatonnement, stability, rational expectations, general equilibrium, D52 - Incomplete Markets, D84 - Expectations ; Speculations
Citation
Herings, P J J 1997 'A Note on "Stability of Tâtonnement Processes of Short Period Equilibria with Rational Expectations"' CentER Discussion Paper, vol. 1997-110, Microeconomics, Tilburg.