Computing Equilibria of Semi-algebraic Economies Using Triangular Decomposition and Real Solution Classification
arXiv:1308.5029
Abstract
In this paper, we are concerned with the problem of determining the existence of multiple equilibria in economic models. We propose a general and complete approach for identifying multiplicities of equilibria in semi-algebraic economies, which may be expressed as semi-algebraic systems. The approach is based on triangular decomposition and real solution classification, two powerful tools of algebraic computation. Its effectiveness is illustrated by two examples of application.
24 pages, 5 figures