We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
The Structure of the Equilibrium Points of Heal's Process.
- Authors
Hori, Hajime
- Abstract
The purpose of the present paper is to consider these two problems. We will analyse the simplest version of Heal's process in which only one good is produced from one primary resource. The analysis and the results can be easily extended to more general versions in which multiple goods are produced from multiple primary resources and intermediate goods. In Section 2, below, we will give a brief sketch of the formal model. In Section 3 we will show that the system of differential equations defining Heal's process has at least one solution starting from any feasible initial allocation. In Section 4 we will relate the stability properties of the equilibrium points to their optimality properties in a manner analogous to the classical result of Lagrange and Dirichlet concerning conservative mechanical systems. In Section 5 we will consider the likelihood of convergence to a local sub-optimum point.
- Subjects
PRODUCTION (Economic theory); ECONOMICS; HEAL, G.; ECONOMIC equilibrium; MARKET equilibrium; ECONOMIC structure; ECONOMIC history; COMMERCIAL products
- Publication
Review of Economic Studies, 1975, Vol 42, Issue 3, p457
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2296858