Equations on the Derivatives of an Initial Endowment-Competitive Equilibrium Mapping for an Exchange Economy
Consider an exchange economy with n traders and k goods. Suppose that there exists C2 mappings p(middot) and x (middot) that specify for each initial endowment w of the k goods to the n traders a price vector p(w) and a vector of net trades x(w) that define a competitive equilibrium. Three systems of determinant equations are derived that the derivatives of p(middot) and x(middot) necessarily satisfy regardless of the underlying preferences that determine these mappings. Each of the three systems of equations fundamentally reflects the interaction among traders in the competitive mechanism.
|Date of creation:||May 2002|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp|
More information through EDIRC
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.:
- Mas-Colell, Andreu, 1977. "On the equilibrium price set of an exchange economy," Journal of Mathematical Economics, Elsevier, vol. 4(2), pages 117-126, August.
- Sonnenschein, Hugo, 1972. "Market Excess Demand Functions," Econometrica, Econometric Society, vol. 40(3), pages 549-63, May.
- Mantel, Rolf R., 1974. "On the characterization of aggregate excess demand," Journal of Economic Theory, Elsevier, vol. 7(3), pages 348-353, March.
- Chen, Pengyuan, 1992. "A lower bound for the dimension of the message space of the decentralized mechanisms realizing a given goal," Journal of Mathematical Economics, Elsevier, vol. 21(3), pages 249-270.
- Donald J. Brown & Rosa L. Matzkin, 1995.
"Testable Restrictions on the Equilibrium Manifold,"
Cowles Foundation Discussion Papers
1109, Cowles Foundation for Research in Economics, Yale University.
- Sonnenschein, Hugo, 1973. "Do Walras' identity and continuity characterize the class of community excess demand functions?," Journal of Economic Theory, Elsevier, vol. 6(4), pages 345-354, August.
- Saari, Donald G., 1984. "A method for constructing message systems for smooth performance functions," Journal of Economic Theory, Elsevier, vol. 33(2), pages 249-274, August.
- Debreu, Gerard, 1974. "Excess demand functions," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 15-21, March.
- John H. Nachbar, 2002. "General Equilibrium Comparative Statics," Econometrica, Econometric Society, vol. 70(5), pages 2065-2074, September.
When requesting a correction, please mention this item's handle: RePEc:ecl:illbus:02-0110. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.