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- Title
Effective Demand and Stochastic Rationing.
- Authors
Svensson, Lars E.
- Abstract
A satisfactory theory of effective demand when there are quantity constraints should at least allow for a distinction between effective demand and trade, the quantities of goods actually exchanged and a definition of effective demand that involves some explicit maximizing behavior with respect to the resulting trade. Both the Dreze and Clower demands are formulated in a deterministic framework where the quantity constraints are perceived by agents to be independent of the expressed demands. Changes will be made to the framework to allow the quantity constraints to be stochastic and define a concept of effective demand that fulfills both requirements.
- Subjects
ECONOMIC demand; RATIONING; STOCHASTIC analysis; CONSUMERS; STOCHASTIC approximation; SUPPLY &; demand; ECONOMICS; SOCIAL sciences
- Publication
Review of Economic Studies, 1980, Vol 47, Issue 2, p339
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2296996