Francesco Ruscitti

Monotone comparative statics in general equilibrium

Under certain conditions on the excess demand function, it is shown that the set of equilibrium prices coincides with the set of maximizers of a potential function. Therefore, monotone comparative statics techniques can be employed to study how equilibrium prices change when there are shocks to the parameters of the model. As a by-product of our analysis, it turns out that the set of equilibrium prices is a convex lattice.

A Remark on the Continuity of the Walras Correspondence in Pure Exchange Economies

We revisit a classical theme of general equilibrium theory, namely the continuity of the Walras correspondence. Using a remarkable theorem due to Fort (Publ Math Debr 2:100–102, 1951) which has widely been used in recent literature on game theory, we prove the generic continuity of the price equilibrium-set correspondence under very general assumptions on the exchange economy.