The Instantaneous Speed of Adjustment Assumption and Stability of Economic Models.

B-Tier
Journal: Economic Theory
Year: 1995
Volume: 5
Issue: 2
Pages: 353-59

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In order to simplify stability analysis of an economic model one can assume that one of the model variables moves infinitely fast towards equilibrium, given the values of the other slower variables. We present conditions such that stability of the simplified model implies, or is implied by, stability of the original model. The conditions make use of the concept of a negative dominant diagonal. As an example, we analyse the (local) stability of a Walrasian general equilibrium model.

Technical Details

RePEc Handle
repec:spr:joecth:v:5:y:1995:i:2:p:353-59
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29