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Takeshi Ogawa
''Stability of the adjustment process with the difference between the weighted average and the actual value''
( 2010, Vol. 30 No.4 )
In this paper, we show a similar concept of stability of the adjustment process concerning the difference between the weighted average and the actual value. Because the adjustment process includes only one eigenvalue of zero, and thus one dimension of freedom, it is difficult to apply the Routh-Hurwitz theorem to the process, at least directly. To solve the one-dimensional freedom, we fully apply Goodwin's analysis of the weighted average. One-dimensional freedom is suitable for indeterminacy issues, or the characterization of price and the like, which has only relative value and no absolute value. From this analysis, we know that it is reasonable to be concerned about the difference between the average and the actual value.
Keywords: Linear approximation system, Weighted average, Hicksian matrix, Linear approximation stable except choosing the absolute value
JEL: P2 - Socialist Systems and Transitional Economies: General
C6 - Mathematical Methods and Programming: General
Manuscript Received : Mar 17 2010 Manuscript Accepted : Nov 11 2010

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