ISSN:
1572-9982
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Summary In Duesenberry's growth model and in Matthews' trade cycle model, insufficient attention is paid to the existence and the stability of the equilibrium of the market of produced goods. If entrepreneurs try to equalize actual and desired utilization of the capital stock, equilibrium of the goods market can only continue to exist if full utilization of the capital equipment prevails at the same time. It is possible to develop a mechanism which results in capital being fully utilized if the goods market is in equilibrium. If the actual utilization tends to adjust itself to the desired, the equilibrium of the goods market tends to disappear. Under these conditions the equilibrium of the goods market is stable.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF02142838
