A More Practical Method for Explaining Equilibrium

Yi-Jang Yu

Abstract


The aim of this study is to suggest a more practical method for explaining market equilibrium in a two-dimensional risk-return world. Its main difference from textbook contents is to define, in both qualitative and quantitative ways, the environment or the system factor and treat it as an endogenous variable. Once the two-dimensional framework that is capable of managing uncertainty and environmental relationship can be reasonably established, a greater number of economic issues can be effectively investigated. As to the traditional concept of economic equilibrium, its importance can be significantly reduced.

Full Text: PDF DOI: 10.5430/rwe.v5n1p88

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

Research in World Economy
ISSN 1923-3981(Print) ISSN 1923-399X(Online)

 

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