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In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text perfect competition, equilibrium occurs at the point at which quantity demanded and quantity ...
A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time. [1]: 366–369 [2]: 545 [3][4] The term usually refers to the national economy of a particular country, but it is also applicable to the economic system of ...
In economics, comparative statics is the comparison of two different economic outcomes, before and after a change in some underlying exogenous parameter. [1] As a type of static analysis it compares two different equilibrium states, after the process of adjustment (if any). It does not study the motion towards equilibrium, nor the process of ...
Walras's law is a principle in general equilibrium theory asserting that budget constraints imply that the values of excess demand (or, conversely, excess market supplies) must sum to zero regardless of whether the prices are general equilibrium prices. That is: where is the price of good j and and are the demand and supply respectively of good j.
Hydrostatic equilibrium, the state of a system in which compression due to gravity is balanced by a pressure gradient force. Hyperbolic equilibrium point, a mathematical concept in physics. Mechanical equilibrium, the state in which the sum of the forces, and torque, on each particle of the system is zero. Radiative equilibrium, the state where ...
Fundamental theorems of welfare economics. There are two fundamental theorems of welfare economics. The first states that in economic equilibrium, a set of complete markets, with complete information, and in perfect competition, will be Pareto optimal (in the sense that no further exchange would make one person better off without making another ...
Social Statics. Social Statics, or The Conditions essential to Happiness specified, and the First of them Developed is an 1851 book by the British polymath Herbert Spencer. The book was published by John Chapman of London. In the book, he uses the term "fitness" in applying his ideas of Lamarckian [1] evolution to society, saying for example ...
Computable general equilibrium (CGE) models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE (applied general equilibrium) models. A CGE model consists of equations describing model variables and ...