CFDP 1109

Testable Restrictions on the Equilibrium Manifold

Author(s): 

Publication Date: August 1995

Pages: 24

Abstract: 

We present a finite system of polynomial inequalities in unobservable variables and market data that observations on market prices, individual incomes and aggregate endowments must satisfy to be consistent with the equilibrium behavior of some pure trade economy. Quantifier elimination is used to derive testable propositions on finite data sets for the pure trade model.

Note: 

Published in Econometrica (September 1996), 64(6): 1249-1262, [jstor]