Disaggregation of excess demand functions in incomplete markets

We are interested in general equilibrium incomplete markets, where the number of consumers is N, the number of goods is L, and the dimension of the space of admissible trades is K (the case of complete markets being then K=(L−1)). We prove that, if N≥K, any non-vanishing analytic function satisfying the natural extension of the Walras law is, locally at least, the excess demand function of such a market.

MoreLess

Year of publication:	1999
Authors:	Chiappori, Pierre-André ; Ekeland, Ivar
Institutions:	Université Paris-Dauphine (Paris IX)
Subject:	Incomplete markets \| Excess demand function \| Disaggregation

More details

Series:	Economics Papers from University Paris Dauphine.
Type of publication:	Book / Working Paper
Notes:	Published in Journal of Mathematical Economics, 1999, Vol. 31, no. 1. pp. 111-129.Length: 18 pages
Classification:	D52 - Incomplete Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011071967