995:
wine, which would feed back into the market for French wine. If the feedback were included, the higher domestic price would shift out the demand curve for French wine, further increasing its price. This further increase would again raise demand for domestic wine, and the feedback would increase, resulting in an infinite cycle that would eventually dampen out and converge. The importance of these feedback effects might or might not be worth the extra calculations necessary. They will generally affect the exact amount of the original good's price change, but not the direction.
40:
1753:
867:
1742:
855:
943:
says, "Partial equilibrium models of markets, or of systems of related markets, determine prices, profits, productions, and the other variables of interest adhering to the assumption that there are no feedback effects from these endogenous magnitudes to the underlying demand or cost curves that are
994:
Consider, for example, the effect of a tariff on imported French wine. Partial equilibrium would look at just that market, and show that the price would rise. It would ignore the fact that if French wine became more expensive, demand for domestic wine would rise, pushing up the price of domestic
936:
analysis, on the other hand, the prices and quantities of all markets in the economy are considered simultaneously, including feedback effects from one to another, though the assumption of ceteris paribus is maintained with respect to such things as constancy of tastes and technology.
1002:
only for one good at a time. Thus, it might look at the effect of a price ceiling for luxury automobiles without looking at the effect of that automobile price ceiling on the demand for bicycles, which would be analyzed separately.
944:
specified in advance." General equilibrium analysis, in contrast, begins with tastes, endowments, and technology being fixed, but takes into account feedback effects between the prices and quantities of all goods in the economy.
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1603:
1319:
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932:(everything else remaining constant) except for the one change at a time being analyzed. In
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570:
392:
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117:
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8:
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160:
122:
78:
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510:
383:
333:
303:
298:
645:
1746:
1218:
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999:
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635:
560:
545:
432:
407:
402:
378:
150:
145:
1721:
1461:
1420:
1339:
1131:
1006:
Partial equilibrium applies not just to perfectly competitive markets, but to
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790:
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740:
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412:
102:
98:
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1771:
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1638:
1550:
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1282:
1196:
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540:
175:
1398:
1150:
1036:
670:
470:
1709:
1476:
1393:
1388:
1201:
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p. 538, Andreu Mas-Colell, Michael
Whinston & Jerry Green (1995)
1019:
1011:
911:
520:
451:
31:
1501:
1496:
1371:
1015:
980:
967:
and quantities in other markets. In other words, the prices of all
1555:
1454:
1366:
1100:
988:
983:, are taken as given. This makes analysis much simpler than in a
941:
Mas-Colell, Whinston & Green's widely used graduate textbook
1741:
1530:
976:
854:
1415:
1297:
1277:
964:
1572:
998:
Partial equilibrium analysis examines the effects of
955:
is the paradigmatic example of a partial equilibrium
1083:(6th ed.). Vrinda Publications. p. 130.
1769:
959:. The clearance of the market for some specific
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891:
1123:
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898:
884:
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1104:
1078:
13:
1679:Microfoundations of macroeconomics
1130:
14:
1789:
1752:
1751:
1740:
987:model, which includes an entire
865:
853:
38:
963:is obtained independently from
140:Concepts, theory and techniques
1072:
1059:
1032:Computable general equilibrium
1:
1052:
922:which analyzes only a single
7:
1624:Civil engineering economics
1609:Statistical decision theory
1249:Income elasticity of demand
1069:, Oxford University Press.
1025:
10:
1794:
1778:General equilibrium theory
1259:Price elasticity of supply
1254:Price elasticity of demand
1244:Cross elasticity of demand
1042:General equilibrium theory
1735:
1702:
1581:
1138:
1315:Income–consumption curve
1008:monopolistic competition
128:JEL classification codes
1649:Industrial organization
949:supply and demand model
314:Industrial organization
171:Computational economics
166:Experimental economics
1619:Engineering economics
1214:Cost–benefit analysis
1436:Price discrimination
1330:Intertemporal choice
1081:Microeconomic Theory
1067:Microeconomic Theory
920:economic equilibrium
393:Social choice theory
16:Concept in economics
1747:Business portal
1684:Operations research
1511:Substitution effect
985:general equilibrium
934:general equilibrium
916:partial equilibrium
860:Business portal
181:Operations research
161:National accounting
1325:Indifference curve
1293:Goods and services
1234:Economies of scope
1229:Economies of scale
918:is a condition of
191:Industrial complex
186:Middle income trap
1765:
1764:
1727:Political economy
1526:Supply and demand
1406:Pareto efficiency
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907:
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1487:Returns to scale
1345:Market structure
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1047:Law of one price
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969:substitute goods
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354:Natural resource
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1219:Deadweight loss
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953:Alfred Marshall
929:ceteris paribus
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566:von Böhm-Bawerk
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151:Economic growth
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72:classifications
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1722:Macroeconomics
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1132:Microeconomics
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1079:Jhingan, M.L.
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951:originated by
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1599:Computational
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1544:Law of supply
1541:
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1535:Law of demand
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1521:Social choice
1519:
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1506:Excess supply
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1492:Risk aversion
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1426:Price ceiling
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1382:Complementary
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1165:non-convexity
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1090:81-8281-071-X
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1000:policy action
996:
992:
990:
986:
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975:, as well as
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461:de Mandeville
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364:Participation
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1689:Optimization
1674:Mathematical
1634:Experimental
1629:Evolutionary
1614:Econometrics
1472:Public goods
1446:Price system
1441:Price signal
1355:Monopolistic
1224:Distribution
1139:Major topics
1080:
1074:
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1005:
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993:
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830:Publications
795:
418:Sociological
391: /
289:Geographical
269:Evolutionary
244:Digitization
209:Agricultural
113:Mathematical
84:Econometrics
1639:Game theory
1604:Development
1551:Uncertainty
1431:Price floor
1411:Preferences
1350:Competition
1320:Information
1283:Externality
1266:Equilibrium
1207:Transaction
1185:Opportunity
1146:Aggregation
666:von Neumann
319:Information
259:Engineering
239:Development
234:Demographic
176:Game theory
118:Methodology
1669:Managerial
1589:Behavioral
1462:Production
1399:Oligopsony
1239:Elasticity
1151:Budget set
1053:References
1037:Cost curve
979:levels of
825:Economists
696:Schumacher
601:Schumpeter
571:von Wieser
491:von ThĂĽnen
452:economists
428:Statistics
423:Solidarity
344:Managerial
309:Humanistic
304:Historical
249:Ecological
214:Behavioral
108:Mainstream
1710:Economics
1582:Subfields
1477:Rationing
1394:Oligopoly
1389:Monopsony
1377:Bilateral
1310:Household
1161:Convexity
1020:monopsony
1012:oligopoly
981:consumers
912:economics
741:Greenspan
706:Samuelson
686:Galbraith
656:Tinbergen
596:von Mises
591:Heckscher
551:Edgeworth
369:Personnel
329:Knowledge
294:Happiness
284:Financial
254:Education
229:Democracy
123:Political
89:Heterodox
32:Economics
1772:Category
1757:Category
1703:See also
1594:Business
1566:Marginal
1561:Expected
1502:Shortage
1497:Scarcity
1372:Monopoly
1278:Exchange
1190:Implicit
1180:Marginal
1026:See also
1016:monopoly
834:journals
820:Glossary
771:Stiglitz
736:Rothbard
716:Buchanan
701:Friedman
691:Koopmans
681:Leontief
661:Robinson
546:Marshall
450:Notable
398:Regional
374:Planning
349:Monetary
279:Feminist
224:Cultural
219:Business
24:a series
22:Part of
1715:Applied
1694:Welfare
1556:Utility
1516:Surplus
1455:Pricing
1367:Duopoly
1360:Perfect
1303:Service
1271:General
1175:Average
989:economy
840:Schools
832: (
791:Piketty
786:Krugman
651:Kuznets
641:Kalecki
616:Polanyi
506:Cournot
501:Bastiat
486:Ricardo
476:Malthus
466:Quesnay
438:Welfare
408:Service
79:Applied
55:Outline
50:History
1540:Supply
1531:Demand
1467:Profit
1335:Market
1197:Social
1087:
977:income
965:prices
924:market
776:Thaler
756:Ostrom
751:Becker
746:Sowell
726:Baumol
631:Myrdal
626:Sraffa
621:Frisch
611:Knight
606:Keynes
581:Fisher
576:Veblen
561:Pareto
541:Menger
536:George
531:Jevons
526:Walras
516:Gossen
384:Public
379:Policy
334:Labour
299:Health
156:Market
1659:Labor
1644:Green
1416:Price
1298:Goods
1288:Firms
961:goods
957:model
813:Lists
781:Hoppe
766:Lucas
731:Solow
721:Arrow
711:Simon
676:Lange
671:Hicks
646:Röpke
636:Hayek
586:Pigou
556:Clark
471:Smith
433:Urban
413:Socio
403:Rural
103:Macro
99:Micro
60:Index
1573:Wage
1482:Rent
1450:Free
1202:Sunk
1170:Cost
1163:and
1085:ISBN
1018:and
991:.
971:and
947:The
797:more
521:Marx
511:Mill
496:List
1664:Law
910:In
761:Sen
481:Say
339:Law
1774::
1022:.
1014:,
1010:,
926:,
914:,
101:/
26:on
1542:/
1533:/
1504:/
1448:/
1124:e
1117:t
1110:v
1093:.
899:e
892:t
885:v
836:)
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