Remarks on criticality and crisis in pure exchange economies

Abstract

In the framework of the theory of Equilibrium Manifold of a Pure Exchange Economy, introduced by Balasko, we give a rigorous definition of a crisis transition and establish some infinitesimal criteria which distinguish unavoidable crises from other critical equilibria. Our approach builds on the relationship between the mathematical notions of branching, envelopes, and the intrinsic derivative.

arXiv comment26 pages, 5 figures