Theory of adaptive adjustment (Q5934136)

This paper is devoted to improving the power of the adaptive adjustment mechanism in stabilization. Moreover, for multiple variable processes uniformly adaptive adjustment is introduced and analyzed, by which all economic variables are adjusted with the same speed. The author shows that such adjustment succeeds in stabilizing type-I and type II steady states. The situation where economic variables are adjusted with different speed is considered as well and possible areas for further research are adressed.