Equilibrium


 

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Equilibrium

1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.

Equilibrium

The stable state of the system. See: Attractor.



Equilibrium

Similar Matches

Equilibrium exchange rate

Equilibrium exchange rate

Exchange rate at which demand for a currency is equal to the supply of the currency in the economy.


Partial equilibrium

Partial equilibrium

Equality 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 equilibrium

Nash equilibrium

An 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 equilibrium

Two cone equilibrium

A 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 equilibrium

Computable general equilibrium

Refers 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 Suggestions

Market equilibrium
Equilibrium level
Multi-cone equilibrium
Balance of payments equilibrium
Disequilibrium
One cone equilibrium
General equilibrium
Equilibrium price
Equilibrium rate of interest
Equilibrium position


 
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