Strict diagonal dominance in asymptotic stability of general equilibrium

Fixexd point theory and applications

Sheng-Yi Hsu¹  Mau-Hsiang Shih¹ 

[1] Department of Mathematics, National Taiwan Normal University, Taipei, Taiwan

关键词: fixed point;    general equilibrium;    stability;    strict diagonal dominance;   

DOI  :  10.1186/1687-1812-2013-225

学科分类：数学（综合）

来源: SpringerOpen

【 摘 要 】

Stability of general equilibrium is usually depicted by a dynamic process of price adjustment which makes the flow of prices eventually come to rest at certain prices, so that the supply and demand of every commodity tend to equal each other. Here we construct a dynamical system of a competitive economy and find that the strict diagonal dominance of the Jacobian matrix of the excess demand function at its equilibrium guarantees the asymptotic stability. MSC:37N40, 91B55, 93D20.

【 授权许可】

CC BY