All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

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

  This abstract has been downloaded 1292 times                The Full PDF of this paper has been downloaded 149391 times