A Framework for Estimating Disequilibrium Models with Many Markets

Arbeitspapier

This paper presents a framework for estimating non-Walrasian models with many markets based on the virtual price approach in Lee (1986). The paper discusses an open economy multi-market non-Walrasian model with many agents and government production. The modeling of the labor markets is built on the assumption that each combination of worker and firm is a separate micro labor market. The econometric specification in the paper assumes log-linear virtual prices. Despite the use of such a simple specification it is apparent that when there are a large number of markets, the computational burden of estimation becomes heavy due to the large number of possible rationing regimes. The model presented in the paper can be viewed as a basis for either doing econometric work within a multi-market representative agent framework or for developing methods for aggregating across micro markets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 138

Classification and Topics

• Classification: Wirtschaft
• Subject: Econometric disequilibrium models ; non-Walrasian equilibrium virtual prices.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andreassen, Leif
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 1995

Further information

• Handle: http://hdl.handle.net/10419/192122
• Last update: 10.03.2025, 11:43 AM CET