|
|
Equilibrium |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Equilibrium1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.EquilibriumThe stable state of the system. See: Attractor.Equilibrium Similar MatchesEquilibrium exchange rateEquilibrium exchange rateExchange rate at which demand for a currency is equal to the supply of the currency in the economy. Partial equilibriumPartial equilibriumEquality of supply and demand in only a subset of an economy's markets -- usually just one -- taking variables from other markets as given. Partial equilibrium models are appropriate for products that constitute only a negligibly small part of the economy. They are used routinely (not always appropriately) for analysis of trade policies in single industries. Contrasts with general equilibrium. Nash equilibriumNash equilibriumAn equilibrium in game theory in which each player's action is optimal given the actions of the other players. E.g., in a tariff-and-retaliation game, with each country able to improve its terms of trade with a tariff, zero tariffs are not Nash, since each can do better by raising its tariff. A Nash equilibrium, with positive tariffs, is likely to be inferior to free trade for both. Two cone equilibriumTwo cone equilibriumA free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are two diversification cones. This, or a multi-cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium. Computable general equilibriumComputable general equilibriumRefers to economic models of microeconomic behavior in multiple markets of one or more economies, solved computationally for equilibrium values or changes due to specified policies. The equations are anchored with data from the countries being modeled, while behavioral parameters are either assumed or adapted from estimates elsewhere. Further SuggestionsMarket equilibriumEquilibrium level Multi-cone equilibrium Balance of payments equilibrium Disequilibrium One cone equilibrium General equilibrium Equilibrium price Equilibrium rate of interest Equilibrium position |
|
|
|