As we might expect, models with social norms easily give rise to multiple equilibria, one with low and one with high welfare-state spending.
Surely, these macroscopic equilibria are ultimately the result of the complicated dynamics of the underlying system of particles including collisions and dissipation.
The authors propose a simple model with linear random technologies and look at the competitive equilibria as the number of commodities and techniques increases.
Pareto-ranked multiple equilibria exist with the extent of the market and circulation of private liabilities endogenously determined.
The logical quantity theory is about the relationship among sets of competitive equilibria.
Note that competitive equilibria also exist in my economy, at nominal prices high enough.
We study monetary equilibria with and without binding reserve requirements.
We confine ourselves to studying monetary equilibria in which a reserve requirement is binding at each date.
