Global invertibility of excess demand functions

Enrique Covarrubias

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Uniqueness; Equilibrium (search for similar items in EconPapers)
JEL-codes: D5 D50 D51 (search for similar items in EconPapers)
Date: 2013-05-30
New Economics Papers: this item is included in nep-mic
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https://mpra.ub.uni-muenchen.de/47300/1/MPRA_paper_47300.pdf original version (application/pdf)

Related works:
Working Paper: Global Invertibility of Excess Demand Functions (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:47300

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