The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Determinacy and Indeterminacy of Equilibria

  • Chris Shannon
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2038

Abstract

This article discusses work on the determinacy and indeterminacy of equilibria in models of competitive markets. Determinacy typically refers to situations in which equilibria are finite in number, and local comparative statics can be precisely described. The article describes basic results on generic determinacy for exchange economies and the general underlying principles, together with various applications and extensions including incomplete financial markets and markets with infinitely many commodities.

Keywords

Ambiguity aversion Arrow–Debreu model Comparative statics Concavity Continuous-time trading Continuum of equilibria Determinacy and indeterminacy of equilibria Edgeworth box economy Excess demand functions Existence of equilibrium Implicit function theorems Incomplete markets Infinite horizons Infinite-dimensional economies Lipschitz continuous functions Loss aversion Multiple equilibria Reference dependence Restricted participation Sard’s th Transversality th Uniqueness of equilibrium Walras’s Law 

JEL Classifications

D5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Chris Shannon
    • 1
  1. 1.