Disaggregation of excess demand functions in incomplete markets

Chiappori, Pierre-André; Ekeland, Ivar

Chiappori, Pierre-André; Ekeland, Ivar (1999), Disaggregation of excess demand functions in incomplete markets, Journal of Mathematical Economics, 31, 1, p. 111-129. http://dx.doi.org/10.1016/S0304-4068(98)00059-7

Type

Article accepté pour publication ou publié

Date

1999

Journal name

Journal of Mathematical Economics

Volume

Number

Publisher

Elsevier

Pages

111-129

Abstract (EN)

We are interested in general equilibrium incomplete markets, where the number of consumers is N, the number of goods is L, and the dimension of the space of admissible trades is K (the case of complete markets being then K=(L−1)). We prove that, if N≥K, any non-vanishing analytic function satisfying the natural extension of the Walras law is, locally at least, the excess demand function of such a market.

Subjects / Keywords

Incomplete markets; Excess demand function; Disaggregation

JEL

D52 - Incomplete Markets