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SUMMARY:General disequilibrium theory - Steven Kerr (University of Edinbur
gh)
DTSTART;VALUE=DATE-TIME:20190228T110000Z
DTEND;VALUE=DATE-TIME:20190228T120000Z
UID:https://talks.ox.ac.uk/talks/id/d2896acb-cea0-4370-9b3d-c702161a5081/
DESCRIPTION:I construct a general\, game theoretic model of markets. Agent
s in the model choose how much of each good to supply/demand\, and at what
prices. Trading can occur at non-market-clearing prices. There is an expl
icit rationing mechanism that kicks in if markets fail to clear. The game
is very complicated\, but a massive simplification occurs in the limit of
a large number of players. This allows a proof of existence of a pure stra
tegy equilibrium. I also prove an analogue of the first fundamental theore
m of welfare economics.\n\nThe game is Keynesian in that 1) markets needn'
t clear at equilibrium so there can be unemployment and 2) there is the po
ssibility of multiple equilibria with different levels of aggregate supply
/demand\, and distinct Pareto rankings. It is perhaps the first adequately
microfounded Keynesian model - there are no crude assumptions on individu
al behaviour\, and there are no representative agents. The model can accom
modate fiat money as a store of value and a medium of exchange. The model
is well placed for investigating dynamics.\nSpeakers:\nSteven Kerr (Univer
sity of Edinburgh)
LOCATION:Manor Road Building (SR A)\, Manor Road OX1 3UQ
URL:https://talks.ox.ac.uk/talks/id/d2896acb-cea0-4370-9b3d-c702161a5081/
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DESCRIPTION:Talk:General disequilibrium theory - Steven Kerr (University o
f Edinburgh)
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