Böcker av Truman F. Bewley

The prices of some products fluctuate dramatically, while others remain more constant. What accounts for these extreme differences? Renowned economist Truman F. Bewley investigates and elucidates this puzzling problem. Its crux, he argues, is that differentiated product prices are usually stable, whereas the prices of undifferentiated products - for which buyers can easily find comparable substitutes - are often volatile. Although product differentiation gives producers market power, this power alone does not guarantee price stability. There are nearly undifferentiated products whose producers have market power yet for which prices are unstable. Weakness of product differentiation makes it so advantageous for producers to compete on price that they do so and forego the benefits and stability of price collusion. Producers of truly differentiated goods prefer to compete on product performance rather than price and find that reducing prices during recessions does little to increase demand. Based on hundreds of interviews with businesspeople responsible for setting prices, Bewley's book is an unusual and groundbreaking work, with findings vital for economists, students, and policymakers.

A deep question in economics is why wages and salaries don't fall during recessions. This is not true of other prices, which adjust relatively quickly to reflect changes in demand and supply. Bewley's findings contradict most theories of wage rigidity and provide fascinating insights into the problems that prevent labor markets from clearing.

The Solutions Manual contains answers to problems in General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory. Truman F. Bewley's book-a cornerstone of microeconomics, general equilibrium theory, and mathematical economics courses-covers the main premises behind insurance, capital theory, growth theory, and social security.

This book presents general equilibrium theory for advanced undergraduate and graduate-level economics students. It discusses economic efficiency, competitive equilibrium, the welfare theorems, the Kuhn-Tucker approach to general equilibrium, the Arrow-Debreu model, and rational expectations equilibrium and the permanent income hypothesis.