NEW CONCEPTS AND TECHNIQUES FOR EQUILIBRIUM ANALYSIS
YALE UNIV NEW HAVEN CT COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
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In the study of the existence of an equilibrium for a private ownership economy, one meets with the basic mathematical difficulty that the demand correspondence of a consumer may not be upper semi-continuous when his wealth equals the minimum compatible with his consumption set. One can prevent this minimum-wealth situation from ever arising by suitable assumptions on the economy for example, it is postulated that free disposal prevails and that every consumer can dispose of a positive quantity of every commodity from his resources and still have a possible consumption. However, assumptions of this type have not been readily accepted on account of their strength, and this in spite of the simplicity that they give to the analysis. The first purpose of this study is to attempt to unify these various approaches.
- Numerical Mathematics