Externalities and Price Dynamics
分析相互依存经济体中的产出与市场出清动态，发现股票均衡演化可能单调或周期，价格短期波动但长期稳态，且单位股票消费越高与低生产率或负外部性相关。
This paper analyzes dynamic movement of outputs and market clearing when mutually interdependent economies trade. The equilibrium evolution of stocks admit the possibility of monotonic or cyclical behavior, even in the long run. However, the prices eventually reach a steady state but may exhibit monotonic or oscillating behavior in the short run. Also, the author shows that higher consumption per unit of stock is associated with lower productivity or negative externalities. A stronger preference for the foreign good increases or decreases consumption, depending whether the externality is negative or positive. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.