The reachability of a stable Edgeworth equilibrium

Γεράσιμος Θ. Σολδάτος

Abstract


This tract studies the reachability properties of a stable general equilibrium resulting from an Edgeworth trading process. It is shown on the basis of a relaxed hereditary nonlinear differential system that under an appropriate definition of stability and reachability, the reachability of an Edgeworth equilibrium at reasonable time requires one more assumption than those needed for stability. This additional assumption imposes a restriction on the possible time paths of an aggregate utility function.

Keywords


Equilibrium (Economics)

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