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Partial equilibrium |
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Partial 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.Similar MatchesMarket equilibriumMarket equilibriumEquality of supply and demand. See equilibrium. EquilibriumEquilibrium1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand. 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. Equilibrium rate of interestEquilibrium rate of interestThe interest rate that clears the market. Also called the trade-clearing interest rate. 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. Further SuggestionsEquilibrium exchange rateEquilibrium General equilibrium Equilibrium level Computable general equilibrium One cone equilibrium Equilibrium price Multi-cone equilibrium Disequilibrium Balance of payments equilibrium Equilibrium position |
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