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Possibility functions and regular economies

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Author Info
Jean-Marc Bonnisseau () (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
Elena L. Del Mercato () (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

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Abstract

In the spirit of Smale's work, we consider pure exchange economies with general consumption sets. In this paper, the consumption set of each household is described in terms of a function called possibility function. The main innovation comes from the dependency of each possibility function with respect to the individual endowment. We prove that, generically in the space of endowments and possibility functions, economies are regular. A regular economy has only a finite number of equilibria which locally depend on endowments and possibility functions in a continuous manner.

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Publisher Info
Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00159638_v1.

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Date of creation: May 2007
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Handle: RePEc:hal:cesptp:halshs-00159638_v1

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Related research
Keywords: General economic equilibrium; consumption possibility; regular economy.;

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