On the relation between the equilibrium set and the demand functions
Part of : Σπουδαί : journal of economics and business ; Vol.63, No.1-2, 2013, pages 94-99
Issue:
Pages:
94-99
Author:
Abstract:
It is shown that, in pure exchange economies, the individual demand functions can be recovered from the equilibrium set regardless of the way we evaluate wealth. Following Balasco (2004), the demand functions do not have to be differentiable, not even continuous nor utility maximizing. Thus, the set of equilibria does not necessarily carry the structure of a manifold. Further, it is proved that the inner product structure is redundant in the sense that the result holds true even if wealth is being evaluated by means of a more general function on the price commodity space satisfying minimal requirements.
Subject (LC):
Keywords:
equilibrium set (manifold), demand functions
Notes:
Περιέχει παράρτημα και βιβλιογραφία
References (1):
- Balasco, Y., 2004. The equilibrium manifold keeps the memory of individual demand functions,Economic Theory 24, 493–501.Chiappori, P. A., Ekeland, I., Ku..bler, H., and Polemarchakis, H., 2004. Testable implications of generalequilibrium theory: a differentiable approach, Journal of Mathematical Economics 40,105–119.Husemoller, D., 1994. Fibre bundles, Springer-Verlag.Samuelson, P. A., 1948. Consumption theory in terms of revealed preferences, Economica 15, 243–253.
