Partial equilibrium

Partial equilibrium

A partial equilibrium is a type of economic equilibrium, where the clearance on the market of some specific goods is obtained independently from prices and quantities demanded and supplied in other markets. In other words, the prices of all substitutes and complements, as well as income levels of consumers are constant. Here the dynamic process is that prices adjust until supply equals demand. It is a powerfully simply technique that allows one to study equilibrium, efficiency and comparative statics.

History

Léon Walras first formalized the idea of a one-period economic equilibrium of the general economic system, but it was French economist Antoine Augustin Cournot and English political economist Alfred Marshall who developed tractable models to analyze an economic system.

ee also

*Competitive equilibrium
*Dynamic equilibrium
*Economics
*Equilibrium (disambiguation page)
*General equilibrium
*Pareto Efficiency
*Welfare economics

External links

* [http://info.wlu.ca/~wwwsbe/faculty/rwigle/ec238/ref/pe.pdf Partial Equilibrium Analysis: A Primer]


Wikimedia Foundation. 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • partial equilibrium — ➔ equilibrium * * * partial equilibrium UK US noun [U] ECONOMICS ► a balance between supply and demand in just one part of an economy: »Today s protectionists too often have partial equilibrium (domestic) economic models in mind when what s… …   Financial and business terms

  • partial equilibrium analysis — UK US noun [S] (also partial equilibrium model) ECONOMICS ► a theory that is based on the belief that one part of an economy can operate in a separate way from all the others: »The problem with his partial equilibrium analysis was the lack of… …   Financial and business terms

  • Equilibrium — is the condition of a system in which competing influences are balanced and it may refer to:cienceBiology* Equilibrioception, the sense of balance present in humans and animals * Homeostasis, the ability of an open system, especially living… …   Wikipedia

  • equilibrium — The stable state of the system. Bloomberg Financial Dictionary See: attractor. Bloomberg Financial Dictionary * * * equilibrium e‧qui‧lib‧ri‧um [ˌiːkwˈlɪbriəm] noun [uncountable] ECONOMICS the idea that there is a situation in an economy where… …   Financial and business terms

  • Equilibrium fractionation — Equilibrium isotope fractionation is the partial separation of isotopes between two or more substances in chemical equilibrium. Equilibrium fractionation is strongest at low temperatures, and (along with kinetic isotope effects) forms the basis… …   Wikipedia

  • Partial pressure — In a mixture of ideal gases, each gas has a partial pressure which is the pressure which the gas would have if it alone occupied the volume.[1] The total pressure of a gas mixture is the sum of the partial pressures of each individual gas in the… …   Wikipedia

  • Equilibrium constant — For a general chemical reaction:alpha A +eta B ... ightleftharpoons sigma S+ au T ...the equilibrium constant can be defined by [F.J,C. Rossotti and H. Rossotti, The Determination of Stability Constants, McGraw Hill, 1961.] :K=frac{S ^sigma {{T^ …   Wikipedia

  • Partial differential equation — A visualisation of a solution to the heat equation on a two dimensional plane In mathematics, partial differential equations (PDE) are a type of differential equation, i.e., a relation involving an unknown function (or functions) of several… …   Wikipedia

  • Partial charge — A partial charge is a charge with an absolute value of less than one elementary charge unit (that is, smaller than the charge of the electron).Partial atomic chargesPartial charges are created due to the asymmetric distribution of electrons in… …   Wikipedia

  • equilibrium constant — a constant, K (or Keq), describing the amounts of reactants and products of a chemical reaction at equilibrium at constant temperature; technically defined by thermodynamic activities, it is usually approximated using concentrations (and… …   Medical dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”