A note on the structural stability of the equilibrium manifold

LOI, ANDREA;MATTA, STEFANO

2010-01-01

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Abstract

In a smooth pure exchange economy with fixed total resources we investigate whether the smooth selection property holds when endowments are redistributed across consumers through a continuous (non-local) redistribution policy. We show that if the policy is regular then there exists a unique continuous path of equilibrium prices which support it.