The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Global Analysis in Economic Theory

  • Steve Smale
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1005

Abstract

Global analysis in economics puts the main results of classical equilibrium theory into a global calculus context. The advantages of this approach are: (a) the proofs of existence of equilibrium are simpler (the main tool is the calculus of several variables); (b) comparative statics is integrated into the model in a natural way; (c) the calculus approach is closer to the older traditions of the subject; and (d) as far as possible the proofs of equilibrium are constructive.

Keywords

Arrow–Debreu theory Calculus of variations Comparative statics Existence of equilibrium Global analysis in economic theory Inverse function th Proofs of equilibrium Sard’s th Walras’s Law 
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Bibliography

  1. Mas-Colell, A. 1985. The theory of general economic equilibrium: A differentiable approach. Cambridge: Cambridge University Press.Google Scholar
  2. Smale, S. 1981. Global analysis and economics. In Handbook of mathematical economics, ed. K.J. Arrow and M.D. Intriligator, vol. 1. Amsterdam: North-Holland.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Steve Smale
    • 1
  1. 1.