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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Market Prices and Natural Prices: A Study in the Theory of the Classical Process of Gravitation

Market Prices and Natural Prices: A Study in the Theory of the Classical Process of Gravitation

Kubin, Ingrid
Flaschel, Peter
Krüger, Michael

Paperback

Series: Dynamische Wirtschaftstheorie, Book 11

Business GeneralEconomics

Currently unavailable to order

ISBN10: 3631430469
ISBN13: 9783631430460
Publisher: Peter Lang
Published: Jul 1 1991
Pages: 302
Language: English
In the classical tradition of economic theory, as represented by A. Smith, D. Ricardo, and more recently by P. Sraffa, market prices are seen to gravitate to or around the natural prices. Therefore, the analysis of natural prices predominated, whereas the relationship between market and natural prices was somewhat neglected. Only in the last 10 years the attempt had begun to study this relation in formal models. Chapter 1 of this book tries to assess essential features of a classical position and to provide a critical survey on the modern literature on gravitation. Among other, the following questions are discussed: how natural and how market prices and quantities are explained; and how the capital rellocation process between sectors is specified. On this basis a discrete nonlinear dynamic model is developed in Chapter 4, which describes a classical market adjustment process. Its distinctive feature is found in asymetric decision constraints faced by producers and workers. The model dynamics which are studied using bifurcation theory and computersimulations corroborate the gravitation hypothesis. Chapter 2 introduces the necessary analytic tools and Chapter 3 surveys other formal models in this field.

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