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 language | English |
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Pages (from-to) | 187-197 |
Number of pages | 11 |
Journal | Economics Bulletin |
Volume | 36 |
Issue number | 1 |
State | Published - 2016 |