Econometrica Vol. 45 No. 3 1977
Non-Walrasian Equilibria
Abstract
There has recently been a resurgence of interest in specifying more completely the relationship between Walrasian microeconomic models of economic behavior and Keynesian macroeconomic models.On the face of it, these two approaches to economic reality seem very different.The Walrasian model assumes agents engage in maximizing behavior taking as given a common perception of relative prices.The relative prices then adjust to equilibrate the system.The Keynesian model specifies that agents' be- havior obeys certain ad hoc rules relating quantity variables of the sys- tem.These quantities then adjust to equilibrate the system.Keynesian analysis is often thought to concern itself primarily with a case where price signals are fixed or adjust very slowly; Walrasian
- DOI
- 10.2307/1911675
- Volume
- 45
- Issue
- 3
- Pages
- 573
- Sources
- bibtex:phds-export.bib crossref openalex