Chapter

Out‐Of‐Equilibrium Modelling

Mario Amendola and Jean‐Luc Gaffard

in Out of Equilibrium

Published in print July 1998 | ISBN: 9780198293804
Published online November 2003 | e-ISBN: 9780191595851 | DOI: http://dx.doi.org/10.1093/0198293801.003.0007
 Out‐Of‐Equilibrium Modelling

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The first chapter of the second part of the book is devoted to the modelling of the theoretical framework expounded in the first part. A Neo‐Austrian theory of production, a sequential analytical framework, a decision process characterized by adaptive expectations and the presence of money, are the main analytical ingredients of the model. This portrays a ‘constraints‐decisions‐constraints’ sequence, where the consideration of both an intra‐ and an inter‐period sequence allows sketching out the interaction between the short and the long term. The full‐fledged working of the model engenders a complex dynamics that appears as the essence of structural change interpreted as a sequential process, and stresses the problem of the viability of the latter.

Keywords: complex dynamics; decision process; Sequence constraints‐decisions‐constraints; sequential model

Chapter.  11897 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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