Partial equilibrium

 

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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.



Similar Matches

Equilibrium level

Equilibrium level

The value taken on by an economic variable in equilibrium, as opposed either to some other value, or to its rate of change.


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.


One cone equilibrium

One cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods can be produced within a single country, and there is only one diversification cone. This will arise if countries' factor endowments are sufficiently similar compared to factor intensities of industries. Contrasts with multi-cone equilibrium.


Equilibrium rate of interest

Equilibrium rate of interest

The interest rate that clears the market. Also called the trade-clearing interest rate.


Multi-cone equilibrium

Multi-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 multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.


Further Suggestions

Equilibrium
Equilibrium exchange rate
Equilibrium
Disequilibrium
Market equilibrium
General equilibrium
Balance of payments equilibrium
Equilibrium price
Nash equilibrium
Equilibrium position
Computable general equilibrium


 
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