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Francesco Ruscitti and Ram Sewak Dubey
 
''Monotone comparative statics in general equilibrium''
( 2016, Vol. 36 No.1 )
 
 
Under certain conditions on the excess demand function, it is shown that the set of equilibrium prices coincides with the set of maximizers of a potential function. Therefore, monotone comparative statics techniques can be employed to study how equilibrium prices change when there are shocks to the parameters of the model. As a by-product of our analysis, it turns out that the set of equilibrium prices is a convex lattice.
 
 
Keywords: Monotone comparative statics, Potential function, Supermodularity, Walrasian equilibrium, Weak gross substitution property
JEL: D5 - General Equilibrium and Disequilibrium: General
C6 - Mathematical Methods and Programming: General
 
Manuscript Received : Sep 13 2015 Manuscript Accepted : Feb 11 2016

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