The LeChatelier principle: the long and the short of it

B-Tier
Journal: Economic Theory
Year: 2000
Volume: 16
Issue: 2
Pages: 471-476

Authors (3)

Wing Suen (University of Hong Kong) Paul Tseng (not in RePEc) Eugene Silberberg (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Using ordinary calculus techniques, we investigate the conditions under which LeChatelier effects are signable for finite changes in parameter values. We show, for example, that the short run demand for a factor is always less responsive to price changes than the long run demand, provided that the factor of production and the fixed factor do not switch from being substitutes to being complements (or vice versa) over the relevant range of the price change. The absence of a sign change in the complementarity/substitutability relation holds under conditions that are considerably more general than supermodularity of the production function.

Technical Details

RePEc Handle
repec:spr:joecth:v:16:y:2000:i:2:p:471-476
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29