Munich Personal RePEc Archive

Global invertibility of excess demand functions

Covarrubias, Enrique (2013): Global invertibility of excess demand functions.

[img]
Preview
PDF
MPRA_paper_47300.pdf

Download (214kB) | Preview

Abstract

In this paper we provide necessary and sufficient conditions for the excess demand function of a pure exchange economy to be globally invertible so that there is a unique equilibrium. Indeed, we show that an excess demand function is globally invertible if and only if its Jacobian never vanishes and it is a proper map. Our result includes as special cases many partial results found in the literature that imply global uniqueness including Gale-Nikaido conditions and properties related to stability of equilibria. Furthermore, by showing that the condition is necessary, we are implicitly finding the weakest possible condition.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.