Direct Perturbations of Aggregate Excess Demand
19 Pages Posted: 9 Jul 2008 Last revised: 16 Mar 2010
Date Written: November 30, 2009
We complement the Sonnenschein-Mantel-Debreu results by establishing that an exchange economy, i.e., preferences and endowments, that generates a given aggregate excess demand (AED) function is close to the economy that generates a perturbation of this AED. As a consequence, genericity and determinacy results obtained by direct perturbation of an AED are as strong as results obtained by perturbing preferences and endowments.
Keywords: Arrow-Debreu, aggregate excess demand, genericity, determinacy, transversality, general equilibrium, Sonnenschein-Mantel-Debreu
JEL Classification: D50, C62, C02
Suggested Citation: Suggested Citation