Monotone comparative statics in general equilibrium

Francesco Ruscitti, Ram Dubey

Research output: Contribution to journalArticleResearchpeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)187-197
Number of pages11
JournalEconomics Bulletin
Volume36
Issue number1
StatePublished - 1 Jan 2016

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Equilibrium price
Monotone comparative statics
General equilibrium
Excess demand function
Price changes
Potential function

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Ruscitti, Francesco ; Dubey, Ram. / Monotone comparative statics in general equilibrium. In: Economics Bulletin. 2016 ; Vol. 36, No. 1. pp. 187-197.
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Monotone comparative statics in general equilibrium. / Ruscitti, Francesco; Dubey, Ram.

In: Economics Bulletin, Vol. 36, No. 1, 01.01.2016, p. 187-197.

Research output: Contribution to journalArticleResearchpeer-review

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