In a pure exchange smooth economy with fixed total resources, we construct a Riemannian metric on the equilibrium manifold such that the minimal geodesic connecting two (sufficiently close) regular equilibria intersects the codimension one stratum of critical equilibria in a finite number of points.
A Riemannian metric on the equilibrium manifold: the smooth case
LOI, ANDREA;MATTA, STEFANO
2006-01-01
Abstract
In a pure exchange smooth economy with fixed total resources, we construct a Riemannian metric on the equilibrium manifold such that the minimal geodesic connecting two (sufficiently close) regular equilibria intersects the codimension one stratum of critical equilibria in a finite number of points.
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