Journal Article The Perceived Demand Curve in the Theory of Second Best Get access Takashi Negishi Takashi Negishi University of Tokyo Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 34, Issue 3, July 1967, Pages 315–316, https://doi.org/10.2307/2296679 Published: 01 July 1967

Journal Article Conditions for Neutral Money Get access Takashi Negishi Takashi Negishi Tokyo, Japan Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 31, Issue 2, April 1964, Pages 147–148, https://doi.org/10.2307/2296197 Published: 01 April 1964

Journal Article Monopolistic Competition and General Equilibrium Get access Takashi Negishi Takashi Negishi Stanford, California Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 28, Issue 3, June 1961, Pages 196–201, https://doi.org/10.2307/2295948 Published: 01 June 1961

Journal Article On Social Welfare Function Get access Takashi Negishi Takashi Negishi Tokyo University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 77, Issue 1, February 1963, Pages 156–158, https://doi.org/10.2307/1879379 Published: 01 February 1963

and to estimate their magnitude, by giving a rational basis to extrapolative expectations. Rationality implies the use of economic theory, considering the cost of information and computation. Extrapolative expectations are derived as the prediction of the equilibrium by the use of estimated excess demand functions, and it is shown that the coefficients of expectations thus derived are such that the system of multiple markets is stable when gross substitutability and tatonnement are also assumed. THE DYNAMIC stability of multiple markets was studied in [3] under the assumption of extrapolative expectations, with the result that stability depends, when gross substitutability and tatonnement are assumed, on the magnitude of the coefficients of expectations whose economic meaning is not necessarily clear. In this note, we shall give some rational basis to extrapolative expectations. The rational expectation hypothesis advanced by Muth [4] is that expectations are essentially the same as the predictions of the relevant economic theory; that the economy generally does not waste information; and that expectations depend specifically on the structure of the entire system. However, since there is cost of information and computation, expectations may also be called rational when they are formed as the prediction based on a simplified and approximated version of the economic theory, using only limited amounts of information on a part of the system. Extrapolative expectations will be derived below as the prediction of the equilibrium by the use of estimated excess demand functions, and it will be shown that the coefficients of expectations thus derived are such that the system of multiple markets is stable when gross substitutability and tatonnement are assumed.

THE THEORY of the general competitive equilibrium, as developed by Leon Walras [64], has recently been reformulated in terms of fairly advanced mathematical methods. The first problem studied extensively was concerned with the conditions under which a competitive equilibrium exists for a model of general equilibrium. Among contributions to the existence problem, Wald [63], Arrow and Debreu [5], McKenzie [35], Nikaido [48], Gale [18], and Negishi [44] may be cited. The optimality problem of a competitive equilibrium was also investigated by, e.g., Arrow [2], Debreu [15, 16], and, in