Consumer Substitution Effects Under Full Industry Equilibrium

8 Pages Posted: 2 Jul 2004

See all articles by Ian Steedman

Ian Steedman

Manchester Metropolitan University - Department of Economics

Abstract

To be of practical use comparative statics must be able to compare long-period equilibria. Such equilibria will almost never have price vectors that are proportional with respect to all prices but one - yet such price vectors are precisely those underlying the usual substitution effect analysis. We consider how this tension may be resolved.

Suggested Citation

Steedman, Ian, Consumer Substitution Effects Under Full Industry Equilibrium. Available at SSRN: https://ssrn.com/abstract=513786

Ian Steedman (Contact Author)

Manchester Metropolitan University - Department of Economics ( email )

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