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On the uniqueness of local equilibria

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

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Abstract

In a pure exchange economy, we definie a new concept of local equilibria where the consumers are restricted by sale constraints. So the equilibrium consumptions are close to the initial endowments. We prove that the local equilibrium is always unique when utility functions are smooth and the constraints are sufficiently tight. We also prove that the local equilibria converge to the equilibrium of the linear tangent economy when the sale constraints converge to zero.

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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-00349204_v1.

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Date of creation: Dec 2008
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Handle: RePEc:hal:cesptp:halshs-00349204_v1

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Related research
Keywords: General economic equilibrium; local equilibria; uniqueness.;

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This page was last updated on 2009-12-8.


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