Direct Perturbations of Aggregate Excess Demand

Castro, Sofia B.S.D.; Dakhlia, Sami F.; Gothen, Peter B.

doi:10.2139/ssrn.1156098

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Direct Perturbations of Aggregate Excess Demand

19 Pages Posted: 9 Jul 2008 Last revised: 16 Mar 2010

See all articles by Sofia B.S.D. Castro

Sofia B.S.D. Castro

Universidade do Porto - Faculdade de Economia (FEP); Universidade do Porto - Centro de Matemática da Universidade do Porto (CMUP)

Sami F. Dakhlia

University of Tennessee, Chattanooga - Department of Finance

Peter B. Gothen

Universidade do Porto - Centro de Matemática da Universidade do Porto (CMUP); Departamento de Matemática Pura, Faculdade de Ciências da Universidade do Porto

Date Written: November 30, 2009

Abstract

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

Castro, Sofia B.S.D. and Dakhlia, Sami F. and Gothen, Peter B., Direct Perturbations of Aggregate Excess Demand (November 30, 2009). Available at SSRN: https://ssrn.com/abstract=1156098 or http://dx.doi.org/10.2139/ssrn.1156098