Parametric persistence of multiple equilibria in an economy directly calibrated to 5 equilibria

C-Tier
Journal: Economic Modeling
Year: 2014
Volume: 41
Issue: C
Pages: 356-364

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In existing literature, there are few concrete examples of multiple equilibria and the only ones known to us have 3 equilibria, but multiplicity remains a major concern for applied models used in policy work. Here, we report numerical examples for a 3 individual 2 good CES/LES pure exchange economy directly calibrated to 5 equilibria. We are able to use analytical methods of the model to show that for certain parameterizations there are no more than 5 equilibria (given the parameter values). We are also able to explore the size of the regions of the parameter space for which 5 equilibria persist, and show these ranges to be very small. Other features of the equilibrium manifolds are explored. Findings are only suggestive and indicative for the special cases we consider rather than definitive, but informative relative to existing work.

Technical Details

RePEc Handle
repec:eee:ecmode:v:41:y:2014:i:c:p:356-364
Journal Field
General
Author Count
2
Added to Database
2026-01-29