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Partial Equilibrium Analysis

In: Microeconomic Theory for the Social Sciences

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  • Takashi Hayashi

    (University of Glasgow)

Abstract

We have worked in the previous chapters on the model in which demands match supplies for multiple goods simultaneously. To emphasize such simultaneity we call it general equilibrium model. It is hard to analyze the behavior of general equilibrium by hand, which is particularly the case when we need to deal with more goods. Thus it is hard to analyze the effects of policies such as taxation, subsidy and regulation in the way that we can see their implications to the allocations of ALL goods simultaneously.

Suggested Citation

  • Takashi Hayashi, 2021. "Partial Equilibrium Analysis," Springer Books, in: Microeconomic Theory for the Social Sciences, chapter 0, pages 275-281, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-3541-0_19
    DOI: 10.1007/978-981-16-3541-0_19
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