We show that, in a pure exchange smooth economy, a redistribution of endowments involving singular economies can be supported by a unique and continuous path of supporting equilibrium price vectors if this redistribution is the projection of a path on the equilibrium manifold transversal to the...

This paper formulates a specific factor model of trade with skilled and unskilled workers as the specific and capital as the mobile factors. Production of goods is subject to intermediation and corruption. We then allow for international capital mobility and show that corruption as an activity...

In an equilibrium trade model, we prove that not only the diversity effect but also the kurtosis effect will affect the pattern of comparative advantage. Furthermore, we find that, against the conventional results, if the kurtosis effect dominates the diversity effect then a country with more...

It is shown that a Walrasian price adjustment process fails to converge to an equilibrium in an exchange economy with three consumers and three commodities, where each consumer has a quasilinear utility function, desires only two commodities, and demands positive amounts of both commodities. The...

We embody a notion of stability for coalition structures by Hart and Kurz (1983) into the framework of general equilibrium, by generalizing the classical value allocation notion (Shapley, 1969) to situations where: (a) agents organize themselves voluntarily into coalition structures (b) the...

In a pure exchange smooth economy with fixed total resources, we construct a Riemannian metric on the equilibrium manifold such that the minimal geodesic connecting two (sufficiently close) regular equilibria intersects the codimension one stratum of critical equilibria in a finite number of points.

It is well known that a competitive equilibrium may fail to exist when consumers' preferences are possibly satiated. In this paper, we provide three new sufficient conditions for the existence of a competitive equilibrium in the standard Arrow-Debreu pure exchange economy with satiated...

We study trade patterns in a pure exchange economy where preferences are symmetric up to taste intensity parameters. In a 2-person, 2-good endowment economy, then all endowments in a particular Edgeworth box rectangle require trading out of that rectangle. Under strictly quasi-concave...

Gintis (2007, 'The Dynamics of General Equilibrium'', Economic Journal 117 (523) , 1280–1309) provides an agent-based model of a Walrasian economy where the tâtonnement is replaced by imitation. His simulations show that the economy converges to the Walrasian equilibrium. Gintis concludes...

When individual preferences are strictly monotone, the continuity of the excess demand functions that is usually assumed to show the existence of a Walrasian equilibrium does not hold for price vectors in which at least one component is equal to zero. In this paper we provide a simple proof of...