Solving systems of simultaneous equations in economics

We show that there is a broad range of systems of simultaneous equations that arise in economics as descriptions of equilibrium that can be solved in elementary fashion via degree theory. Some of these systems are not susceptible to analysis by standard Brouwer fixed point methods. Two of our applic...

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Veröffentlicht in:Journal of mathematical economics 1990, Vol.19 (1), p.69-93
Hauptverfasser: Geanakoplos, John, Shafer, Wayne
Format: Artikel
Sprache:eng
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Zusammenfassung:We show that there is a broad range of systems of simultaneous equations that arise in economics as descriptions of equilibrium that can be solved in elementary fashion via degree theory. Some of these systems are not susceptible to analysis by standard Brouwer fixed point methods. Two of our applications are to general equilibrium with incomplete markets, and to non-convex production with non-competitive pricing rules.
ISSN:0304-4068
1873-1538
DOI:10.1016/0304-4068(90)90036-9