1

Would this general definition suffice for any steady state:

In steady state allocations and prices are constant (or growing at constant rate)

So for instance if I define an Arrow-Debreu equilibrium with prices and allocations, I can for every price and allocation generally say:

$x_{t}$ = $x_{t+1}$ = $x$

Is there a standard agreed upon definition that I can always rely on?

Rumi
  • 977
  • 5
  • 14
  • 1
    https://economics.stackexchange.com/questions/25770/what-does-steady-state-mean – Kinno Dec 10 '21 at 11:41
  • This seems to be duplicate of the Q linked in the other comments can you please explain why the answer there does not answer your Q? – 1muflon1 Dec 11 '21 at 13:01
  • The answers there says it depends on context. But there has to be a general definition in terms of competitive equilibria given allocations and prices. I think it is when per capita allocations are constant and real prices are constant, although it is possible for aggregate variables to grow. – Rumi Dec 13 '21 at 07:53

0 Answers0