You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Theorem on Expectations and the Stability of Equilibrium
Alain C. Enthoven and Kenneth J. Arrow
Vol. 24, No. 3 (Jul., 1956), pp. 288-293
Published by: The Econometric Society
Stable URL: http://www.jstor.org/stable/1911633
Page Count: 6
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
The relationship between extrapolative expectations and dynamic stability is studied in the context of a multiple market system. Metzler's theorem on the Hicksian stability conditions is extended to include a simple expectations function. It is shown that a stable dynamic system can absorb the effects of some extrapolation of price movements and remain stable.
Econometrica © 1956 The Econometric Society