Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48133
Authors: 
Lehmann-Waffenschmidt, Marco
Year of Publication: 
2004
Series/Report no.: 
Dresden discussion paper in economics 01/04
Abstract: 
It is routine to demonstrate in the exchange economy framework that small changes of individual preferences and endowments always result in small changes of the derived excess demand functions as one should expect. Though being as desirable for reasons of the consistency of the whole approach, however, a precise proof of the converse direction so far is still open to question. The present paper shows that it is actually true. We use a decomposition method for aggregate excess demand functions developed by Mas-Colell which is derived from the well-known decomposition method developed by Sonnenschein and perfected by Debreu and Mantel. Our result fills in a notorious gap in the line of economic justification usually given for this decomposition method.
Subjects: 
continuous decomposition
aggregate excess demand
JEL: 
C63
D11
D50
Document Type: 
Working Paper

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