Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74547 
Year of Publication: 
2013
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 7 [Issue:] 2013-23 [Publisher:] Kiel Institute for the World Economy (IfW) [Place:] Kiel [Year:] 2013 [Pages:] 1-49
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
The classical cobweb theorem is extended to include production lags and price forecasts. Price forecasting based on a longer period has a stabilizing effect on prices. Longer production lags do not necessarily lead to unstable prices; very long lags lead to cycles of constant amplitude. The classical cobweb requires elasticity of demand to be greater than that of supply; this is not necessarily the case in a more general setting. Random shocks are also considered.
JEL: 
C02
C62
E32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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