An index formula for production economies with externalities

Antoine Mandel (1)

1 CES - Centre d'économie de la Sorbonne

We prove that the degree of the equilibrium correspondence of an economy with increasing returns and external effects is equal to (−1)L−1 where L is the dimension of the space of goods. This allows us to infer existence, finiteness and uniqueness results.

Mots clés: Existence of equilibrium; Increasing returns; Externalities; Degree theory; General equilibrium theory

Domaines: Economies et finances

Antoine Mandel. An index formula for production economies with externalities. Journal of Mathematical Economics, 2008, 44, pp.1385-1397. ⟨halshs-00634648⟩