Academic Commons

Reports

Limited Arbitrage is Necessary and Sufficient for the Existence of an Equilibrium

Chichilnisky, Graciela

In 1991, in [1], [2] and in [8], I introduced the concept of global cone and used it to define a condition on endowments and preferences, "˜limited arbitrage', which I showed to be necessary and sufficient for the existence of a competitive equilibrium [8]. In response to a comment [19], I show here that the authors misunderstood my results by focusing on brief announcements which cover other areas, social choice [6] and algebraic topology [3], rather than on the publication which contains my proofs on equilibrium [8]. The comment's example is irrelevant to my results in [8] because it starts from different conditions. Limited arbitrage is always necessary and sufficient for the existence of a competitive equilibrium, with or without short sales, with the global cones as I defined them, and exactly as proved in [8].

Subjects

Files

More About This Work

Academic Units
Economics
Publisher
Department of Economics, Columbia University
Series
Department of Economics Discussion Papers, 9596-35
Published Here
March 3, 2011

Notes

July 1996

Academic Commons provides global access to research and scholarship produced at Columbia University, Barnard College, Teachers College, Union Theological Seminary and Jewish Theological Seminary. Academic Commons is managed by the Columbia University Libraries.