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Stability analysis
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An analysis of the behaviour of the variables of an economic system when it is out of equilibrium, concerned specifically with the question of whether they will tend to converge towards or diverge from their equilibrium values over time. For example, the Cobweb theorem analyses the time-path of price and output in an agricultural market, and establishes conditions under which price oscillations will diminish through time as price converges to its equilibrium. Clearly, since time must enter explicitly, stability analysis forms an important part of economic dynamics.
Reference: The Penguin Dictionary of Economics, 3rd edt.
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