Document Type
Discussion Paper
Publication Date
10-1-1989
CFDP Number
902
CFDP Pages
31
Abstract
We show that there is a broad range of systems of simultaneous equations that arise in economics as descriptions of equilibrium that can be solved in elementary fashion via degree theory. Some of these systems are not susceptible to analysis by standard Brouwer fixed point methods. Two of our applications are to general equilibrium with incomplete markets, and to nonconvex production with noncompetitive pricing rules.
Recommended Citation
Geanakoplos, John and Shafer, Wayne, "Solving Systems of Simultaneous Equations in Economics" (1989). Cowles Foundation Discussion Papers. 1146.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1146