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LONG‐RUN RISING SUPPLY PRICE AND THE NUMÉRAIRE
Author(s) -
Opocher Arrigo,
Steedman Ian
Publication year - 2008
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2007.00292.x
Subject(s) - economics , product (mathematics) , supply and demand , short run , microeconomics , set (abstract data type) , monetary economics , mathematics , computer science , geometry , programming language
When a set of industries is kept in long‐run equilibrium, it is never possible to change just one price at a time. But when various (or all) prices are changing, the direction of change of any one price can depend on the numéraire adopted. What does it mean, then, to say that a long‐run supply curve is upward (or downward) sloping? Can this qualitative property be independent of the numéraire in terms of which the product price is being measured? In general, it cannot.