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A Global Analysis of Constrained Behavior: The LeChatelier Principle “in the Large”

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  • Jean‐Paul Chavas

Abstract

New global results are obtained on the LeChatelier‐Samuelson principle reflecting the properties of constrained behavior. Relying on the saddle point characterization of the Lagrangean, simple yet powerful LeChatelier results are derived and investigated under general conditions. The results do not require differentiability assumptions or unique solution, and they hold for discrete changes. The usefulness of the approach is illustrated in several applications, showing how the analysis generates insights into global economic adjustments.

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  • Jean‐Paul Chavas, 2006. "A Global Analysis of Constrained Behavior: The LeChatelier Principle “in the Large”," Southern Economic Journal, John Wiley & Sons, vol. 72(3), pages 627-644, January.
    • Handle: RePEc:wly:soecon:v:72:y:2006:i:3:p:627-644
    DOI: 10.1002/j.2325-8012.2006.tb00724.x
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