کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
979635 933376 2007 16 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
On feedback and stable price adjustment mechanisms
موضوعات مرتبط
مهندسی و علوم پایه ریاضیات فیزیک ریاضی
پیش نمایش صفحه اول مقاله
On feedback and stable price adjustment mechanisms
چکیده انگلیسی

Given an excess demand function of an economy, say Z(p)Z(p), a stable price adjustment mechanism (SPAM) guarantees convergence of solution path p(t,p0)p(t,p0) to an equilibrium peqpeq solution of Z(p)=0Z(p)=0. Besides, all equilibrium points of Z(p)Z(p) are asymptotically stable. Some SPAMs have been proposed, including Newton and transpose Jacobian methods. Despite this powerful stability property of SPAMs, their acceptation in the economics community has been limited by a lack of interpretation. This paper focuses on this issue. Specifically, feedback control theory is used to link SPAMs and price dynamics models with control inputs, which match the economically intuitive Walrasian Hypothesis (i.e., prices change with excess demand sign). Under mild conditions, it is shown the existence of a feedback function that transforms the price dynamics into a desired SPAM. Hence, a SPAM is interpreted as a fundamental (e.g., Walrasian) price dynamics under the action of a feedback function aimed to stabilize the equilibrium set of the excess demand function.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Physica A: Statistical Mechanics and its Applications - Volume 377, Issue 1, 1 April 2007, Pages 211–226
نویسندگان
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