Ambiguities in the Sign of Excess Effective Demand by Firms

S-Tier
Journal: Review of Economic Studies
Year: 1982
Volume: 49
Issue: 4
Pages: 645-651

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

Can we state that at a given Benassy Fixprice Allocation z* there is, say, excess effective demand for a commodity? It turns out that in productive economies there may be ambiguities in the sign of excess effective demand: different effective demand vectors with different signs, may be compatible with z*. We prove: (a) no ambiguity exists if intermediate goods are ruled out and if all firms in the long side of a market perceive binding constraints; (b) in any case one can always select a vector of effective demands yielding minimal sets of buyer's and seller's markets.

Technical Details

RePEc Handle
repec:oup:restud:v:49:y:1982:i:4:p:645-651.
Journal Field
General
Author Count
1
Added to Database
2026-01-29