Market equilibrium

Led by the seminal papers of McKinnon (1973) and Shaw (1973), a significant number of studies have pointed out that financial liberalization can exert a positive effect on growth rates as interest rate levels rise towards their competitive market equilibrium, while resources are efficiently allocated. Accordingly, eliminating controls on interest rates and allowing them to increase could stimulate a higher level of savings. Moreover, with the assumption of a strong response of savings to the rate of interest, higher interest rates are expected to increase financial intermediation (the level of financial asset channelled by the financial system).1 Strictly under these strong assumptions, it is likely that financial liberalization produces higher savings which ultimately fosters economic development through changes in quality (by allowing efficient allocation of resources) and quantity of investment (Reinhart & Tokatlidis, 2003).

The objective of the study was to provide empirical evidence on whether food aid leads to depressed domestic maize prices and reduced maize production in subsequent years in Swaziland. The lack of empirical evidence has often resulted in premature negative conclusions about the impact of food aid on Swaziland's maize industry. The study used secondary national data from 1985 to 2006. Variables used in the statistical analysis included quantity of cereal food aid; quantity of commercial maize imports; quantity of locally produced maize; official maize producer price; open market maize producer price; fertilizer price; fuel price; rainfall; and total area planted to maize. The impact of food aid was measured using the reduced form market equilibrium model consisting of maize quantity and maize producer price functions, estimated simultaneously through the two-stage least squares (2SLS) method. Analytical results revealed that food aid received by Swaziland does not lower prices of domestic maize and has no significant negative effect on the quantity of maize produced in subsequent seasons.

We briefly discuss ideas about computable economics, and comment on the contributions of A.A. Lewis and K.V. Velupillai.We then sketch the mathematical background for the Tsuji et al. (Tsuji, M., da Costa, N.C.A., Doria, F.A., 1998. The incompleteness of theories of games.
Journal of Philosophical Logic 27, 553–564) result on the undecidability and incompleteness of game theory and of the theory of competitive markets, using that result in the  concluding sections of the paper to examine the (possible) empirical interpretation of economic and
social systems as computing devices

Value concept and economic surplus are very important in explaining value creation and value distribution in the economy. From the value creation perspective, this paper explores the value concept to understand the relationship between price and value for a commodity in the market, in which value is created in the consumption, and price has a role in value distribution between firms and customers. Theoretical models are developed to identify the supply functions on the logic of maximizing behaviors in the market. The numerical experiments are used to conduct the value balance between the firm and the customer, the value balance is also a necessary condition for market equilibrium including price equilibrium and value equilibrium. The study result reveals that economic surplus is reformulated under market equilibrium, but it is measured upon the maximizing behaviors of firms and customers in the market. The paper contributes to the development of value theory that provides a clear understanding of market behavior and welfare analysis in the economy.

Reflexionar sobre la historia del pensamiento económico o considerar cuál ha sido la evolución de la ciencia económica en el marco de la interpretación de la sociedad, es de enorme importancia. Si los economistas se encierran en el círculo vicioso de la "utilidad" de la cienca, terminan entrampados en su lógica positivista; esto parece, no obstante, ser la tendencia.

El objetivo de este artículo se limita a reflexionar en torno a la noción de equilibrio en economía, tal y como la conciben los neoclásicos. Creemos que en tordo al equilibrio se juegan los supuestos trascendentales que mantiene esta corriente apara comprender la realidad; tanto la percepción de la realidad, cuando el método para aprehenderla se sintetizan en la noción de equilibrio.

The evolution of economic growth theory has become inextricably linked to the evolution of economics itself, at least insofar as that discipline provides an explanation for the wealth of nations. Many of the elements that form the basis of modern economic growth theory have their origins in the work of classical economists such as Adam Smith ((1776) 1937), David Ricardo ((1817) 1951), and Thomas Malthus ((1798) 1986). It wasn't until much later that Frank Ramsey (1928), Allyn Young (1928), and Joseph Schumpeter (1934) developed the basic approaches of competitive behavior and equilibrium dy- namics, the role of increasing returns and economic progress, and the effects of technological progress through invention, innovation, and entrepreneurship. The next important contributions were those of Solow (1956) and Swan (1956), whose work formed what has become known as the neoclassical growth model. This model gave rise to a wide-ranging literature on economic growth that in turn fue...

Biofuels have been promoted to achieve energy security and as a solution to mitigating climate change. This research presents a framework to examine the extent to which biofuel mandates and subsidies reduce gasoline consumption and their implications for the food and fuel prices. A dynamic, multi-market equilibrium model, Biofuel and Environmental Policy Analysis Model (BEPAM), is used to estimate the

What is the effect of product market integration on the market equilibrium in the presence of international network externalities in consumption? To address this question, we set up a spatial two-country model and we find that the economic forces at work may have an ambiguous effect on prices.

In this paper we explore the effectiveness of the s terilized central bank interventions through the noise trading channel. This study is conducted for the Central Bank of Iceland's case before and after the financial crisis. The noise tr ading channel assumes that noise traders must prevail the foreign exchange market and the ex change rate is determined by flow

The introduction of the cashless policy in March 2012 aimed to drive development and advance payment systems in Nigeria. In addition, the policy aimed to reduce costs related to banking and facilitate the progression of monetary policy decisions and economic growth. To date, the extant literature has not directly evaluated the effectiveness of the system but only attempts to evaluate the benefits and adverse effects of the cashless policy in Nigeria. This study evaluates the impact of the cashless arrangement in Nigeria on different macroeconomic variables which are unemployment rate, GDP, FDI, corruption and money supply. The study uses data immediately before and post the introduction of the cashless policy in 2012. The analysis shows that the cashless policy has largely been valuable to Nigeria, considering the positive effects on GDP, unemployment rate and money supply.

In this paper, we study the Nash dynamics of strategic interplays of n buyers in a matching market setup by a seller, the market maker. Taking the standard market equilibrium approach, upon receiving submitted bid vectors from the buyers, the market maker will decide on a price vector to clear the market in such a way that each buyer is

Since Akerlof's (1970) seminal paper the existence of adverse selection due to asymmetric information about quality is well-understood. Yet two questions remain. First, given the negative implications for trading and welfare, how do such markets come into existence? And second, why have many studies failed to find direct or indirect evidence of adverse selection? In addressing the first question directly we shed some light on the second. We consider a market in which firms make an observable investment that generates products of a quality that becomes known only to the firm. Entry has the tendency to lower prices, which may lead to adverse selection. The implied price collapse limits the amount of entry so that high prices are supported in the market equilibrium, which results in above normal profits. While contributing to our understanding of markets with asymmetric information and adverse selection, the model also provides insight into the question of why markets with adverse ...

Cointegration methods are increasingly used to test for market efficiency and integration. The economic rationale for these tests, however, is generally unclear. Using a simple spatial equilibrium model to simulate equilibrium price behavior, it is shown that prices in a well-integrated, efficient market need not be cointegrated. Furthermore, the number of cointegrating relationships among prices is not a good indicator