Document Type
Discussion Paper
Publication Date
7-1-2003
CFDP Number
1431
CFDP Pages
22
Abstract
We present two arguments, one based on index theory, demonstrating that the multi-country Ricardo model has a unique competitive equilibrium if the aggregate demand functions exhibit gross substitutability. The result is somewhat surprising because the assumption of gross substitutability is sufficient for uniqueness in a model of exchange but not, in general, when production is included in the model.
Recommended Citation
Scarf, Herbert E. and Wilson, Charles A., "Uniqueness of Equilibrium in the Multi-Country Ricardo Model" (2003). Cowles Foundation Discussion Papers. 1704.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1704