Existence of competitive equilibria with externalities: A differential viewpoint
We consider a class of pure exchange economies with externalities. The consumption set and the preferences of each household depend on his initial endowment and on the actions of the other households. We give a definition of competitive equilibrium with externalities which includes as particular case the classical definition. Under differentiability and boundary conditions, we show that for all economies there exist competitive equilibria with strictly positive consumptions and prices. Our approach is based on homotopy arguments in differential topology, where it is possible describe equilibria in terms of first order conditions and market clearing conditions.
(This abstract was borrowed from another version of this item.)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jean-Marc Bonnisseau & Jorge Rivera Cayupi, 2002.
"The equilibrium manifold with Boundary constraints on the Consumption sets,"
wp196, University of Chile, Department of Economics.
- Jean-Marc Bonnisseau & Jorge Rivera Cayupi, 2003. "The equilibrium manifold with boundary constraints on the consumption sets," Estudios de Economia, University of Chile, Department of Economics, vol. 30(2 Year 20), pages 225-240, December.
- Smale, S., 1974. "Global analysis and economics IIA : Extension of a theorem of Debreu," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 1-14, March.
- Wayne Shafer & Hugo Sonnenschein, 1974.
"Some Theorems on the Existence of Competitive Equilibrium,"
103, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Shafer, Wayne & Sonnenschein, Hugo, 1975. "Some theorems on the existence of competitive equilibrium," Journal of Economic Theory, Elsevier, vol. 11(1), pages 83-93, August.
- Shafer, Wayne & Sonnenschein, Hugo, 1975.
"Equilibrium in abstract economies without ordered preferences,"
Journal of Mathematical Economics,
Elsevier, vol. 2(3), pages 345-348, December.
- Wayne Shafer & Hugo Sonnenschein, 1974. "Equilibrium in Abstract Economies Without Ordered Preferences," Discussion Papers 94, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Elena Laureana Del Mercato, 2004.
"Existence of competitive equilibria with externalities : a differential viewpoint,"
Cahiers de la Maison des Sciences Economiques
b04078, Université Panthéon-Sorbonne (Paris 1).
- del Mercato, Elena L., 2006. "Existence of competitive equilibria with externalities: A differential viewpoint," Journal of Mathematical Economics, Elsevier, vol. 42(4-5), pages 525-543, August.
- Monique Florenzano, 2007.
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Monique Florenzano, 2008. "General equilibrium," Documents de travail du Centre d'Economie de la Sorbonne b08005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Debreu, Gerard, 1970.
"Economies with a Finite Set of Equilibria,"
Econometric Society, vol. 38(3), pages 387-92, May.
- Bonnisseau, J.M., 1995. "Existence of Equilibria in Economies with Externalities and Non Convexities," Papiers d'Economie MathÃ©matique et Applications 95.45, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:42:y:2006:i:4-5:p:525-543. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.