Adjustment Processes Resulting in Equilibrium in the Private Ownership Economy

Abstract

The paper considers a private ownership economy in which economic agents
could realize their aims at given prices, Walras Law is satisfied but agents’
optimal plans of action do not lead to an equilibrium in the economy. It means
that the market clearing condition is not satisfied for agents’ optimal plans
of action. In this context, the paper puts forward three specific adjustment
processes resulting in equilibrium in a transformation of the initial economy.
Specifically, it is shown, by the use of strict mathematical reasoning, that if there
is no equilibrium in a private ownership economy at given prices, then, under
some natural economic assumptions, after a mild evolution of the production
sector, equilibrium at unchanged prices can be achieved.