Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100131
Authors: 
Covarrubias, Enrique
Year of Publication: 
2013
Series/Report no.: 
Working Papers, Banco de México 2013-21
Abstract: 
In this paper we provide necessary and sufficient conditions for the excess demand function of a pure exchange economy to be globally invertible so that there is a unique equilibrium. Indeed, we show that an excess demand function is globally invertible if and only if its Jacobian never vanishes and it is a proper map. Our result includes as special cases many partial results found in the literature that imply global uniqueness including Gale-Nikaido conditions and properties related to stability of equilibria. Furthermore, by showing that the condition is necessary, we are implicitly finding the weakest possible condition.
Subjects: 
excess demand function
invertibility
uniqueness
Jacobian
proper map
JEL: 
C62
C65
D51
D52
D58
Document Type: 
Working Paper
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