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dc.contributor.authorNordén, Gunnar
dc.description.abstractThe correspondence principle suggests a link between asymptotic stability properties of equi­lib­ria of economic models and the equilibrium response to data that describe the model or the model envi­ronment. However, this link has been impaired by a logical-mathe­matical defi­ciency. This paper, by introducing a conceptual requirement of (local) structural stability as part of the principle hypotheses, rectifies the relation between qualitative properties of equi­libria and the analysis of variations. Two related examples are given. The first completes Dierkers’ proof of a unique equilibrium in regular Arrow–Debreu economies, where all price systems are locally stable relative to a tâtonnement process. The second vali­dates linear ap­proximation analysis of deterministic continuous time rational expectation models. The pa­per’s focus on local analysis makes it possible to handle potentially difficult problems in a straight­forward manner.en
dc.format.extent193093 bytes
dc.relation.ispartofseriesDiscussion Paperen
dc.titleThe Correspondence Principle and Structural Stability in Non-Maximum Systemsen
dc.typeWorking paperen
dc.subject.nsiVDP::Social science: 200::Economics: 210::Economics: 212en

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  • Discussion Papers [30]
    This collection contains BI's Discussion Papers series, published online from 2000. The series was terminated in 2009.

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