A NOTE ON THE LOTKA-VOLTERRA GRAVITATION PROCESS AND ITS PLEASANT PROPERTIES

Abstract

Within the framework of a square von Neumann model, this paper is concerned with the most elementary version of a classical competitive adjustment process of the cross-dual type . Slightly modifying the dynamics that were put forward in a recent a rticle by P. Flaschel and W. Semmler (1987), it is, in particular, de monstrated that the trajectories of relative prices and activity leve ls move in a constant distance from the equilibrium, and that in the long run their time averages tend to the respective equilibrium value s. Copyright 1988 by Blackwell Publishers Ltd and The Victoria University of Manchester