Reproduction and Temporary Disequilibrium: A Classical Approach

20 Pages Posted: 3 Oct 2012

See all articles by Carlo Benetti

Carlo Benetti

Université Paris Ouest - Nanterre, La Défense - EconomiX

Christian Bidard

Université Paris X Nanterre

Edith Klimovsky

UAM Xochimilco

Antoine Rebeyrol

Université Paris Ouest - Nanterre, La Défense - EconomiX

Date Written: November 2012

Abstract

We build a bisector reproduction model with Classical features in which the capitalists aim at maximizing accumulation. At variance with gravitation models, it is assumed that they invest their profits in their own industry. Their plans are based on actual productions and expected prices. Effective prices and effective allocations of resources are determined by a market‐clearing mechanism. A law on the formation of expectations allows us to define the dynamics of disequilibria, which let appear endogenous self‐sustained fluctuations around a long‐run path. The long‐run rate of growth and the amplitude of the fluctuations depend on the initial conditions.

Suggested Citation

Benetti, Carlo and Bidard, Christian and Klimosvsky, Edith Alicia and Rebeyrol, Antoine, Reproduction and Temporary Disequilibrium: A Classical Approach (November 2012). Metroeconomica, Vol. 63, Issue 4, pp. 614-633, 2012, Available at SSRN: https://ssrn.com/abstract=2156063 or http://dx.doi.org/10.1111/j.1467-999X.2012.04157.x

Carlo Benetti (Contact Author)

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

Christian Bidard

Université Paris X Nanterre ( email )

Room G301, Building G
92001 Nanterre Cedex, 92001
France

Edith Alicia Klimosvsky

UAM Xochimilco ( email )

Calzada del Hueso 1100
Coyoacan
Mexico, 04960
Mexico

Antoine Rebeyrol

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
352
PlumX Metrics