TY - JOUR
T1 - General equilibrium comparative statics
T2 - Discrete shocks in production economies
AU - Nachbar, John H.
PY - 2004/2
Y1 - 2004/2
N2 - Nachbar [Econometrica 79 (5) (2002) 2065] established minimal conditions under which, following an infinitesimal shock to endowments in an exchange economy, changes in equilibrium prices are negatively related to changes in aggregate consumption. The present paper extends Nachbar (2002) to cover discrete shocks to technologies, ownership shares, and endowments in production economies. As in Nachbar (2002), the analyst's choice of price normalization plays a key role. The required normalization is nonstandard but has a sensible interpretation.
AB - Nachbar [Econometrica 79 (5) (2002) 2065] established minimal conditions under which, following an infinitesimal shock to endowments in an exchange economy, changes in equilibrium prices are negatively related to changes in aggregate consumption. The present paper extends Nachbar (2002) to cover discrete shocks to technologies, ownership shares, and endowments in production economies. As in Nachbar (2002), the analyst's choice of price normalization plays a key role. The required normalization is nonstandard but has a sensible interpretation.
KW - Comparative statics
KW - General equilibrium
KW - Weak Axiom
UR - https://www.scopus.com/pages/publications/0742324357
U2 - 10.1016/S0304-4068(03)00093-4
DO - 10.1016/S0304-4068(03)00093-4
M3 - Article
AN - SCOPUS:0742324357
SN - 0304-4068
VL - 40
SP - 153
EP - 163
JO - Journal of Mathematical Economics
JF - Journal of Mathematical Economics
IS - 1-2
ER -