Global Invertibility of Excess Demand Functions

Enrique Covarrubias

No 2013-21, Working Papers from Banco de México

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.

JEL-codes: C62 C65 D51 D52 D58 (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-mic
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Working Paper: Global invertibility of excess demand functions (2013)
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