Disequilibria in a macro-economic model

This paper discusses a model of an economy with a consumption sector and a production sector, which is similar to the models, developed by Barro and Grossman (1971), Malinvaud (1977), Böhm (1976) and others. These models are characterized by the fact that demand and supply are not equal. This disequilibrium situation is studied under the assumption that demand and supply of the consumption sector are based on a utility function. In particular it is investigated, which conditions are to be imposed on the utility function in order to obtain the same results as the literature mentioned above. In order to arrive at a realizable trade in the model, two approaches have been followed. The economy is described by a game and a possible adjustment mechanism is suggested