Date
1999
Ville de l'éditeur
Louvain
Nom de l'éditeur
Université catholique de Louvain
Titre de la collection
CORE Discussion Papers
n° dans la collection
2000-24
Indexation documentaire
Probabilités et mathématiques appliquées
Subject
testability; identification; equilibrium; aggregation
Code JEL
D1; D5
Auteur
Kubler, Félix
Ekeland, Ivar
Chiappori, Pierre-André
Polemarchakis, Heracles
Type
Document de travail / Working paper
Nombre de pages du document
22
Résumé en anglais
The fundamentals of an exchange economy, the preferences of individuals, can be identified from the competitive equilibrium correspondence, which associates equilibrium prices of commodities to allocations of endowments; the argument extends to production economies. The essential step is the identification of fundamentals from aggregate demand as a function of the prices of commodities and the distribution of income. The graph of the equilibrium correspondence or of the aggregate demand function satisfy non - trivial restrictions. The identification of fundamentals allows for the prediction of the response of individuals and the economy to changes in the organization of production and exchange, while restrictions on the equilibrium correspondence or the aggregate demand function imply that general equilibrium theory has testable implications.