Geodesics on the equilibrium manifold

LOI, ANDREA;MATTA, STEFANO

2008-01-01

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Abstract

We show the existence of a Riemannian metric on the equilibrium manifold Such that a minimal geodesic connecting two (sufficiently close) regular equilibria intersects the set of critical equilibria in a finite number of points. This metric represents a solution to the following problem: given two (sufficiently close) regular equilibria, find the shortest path connecting them which encounters the set of critical equilibria in a finite number of points. Furthermore, this metric can be constructed in such a way to agree, Outside an arbitrary small neighborhood of the set of critical equilibria, to any given metric with economic meaning.