ON THE EXISTENCE OF UNIVERSALLY CONVERGENT MECHANISMS

Authors
BALA V KIEFER NM
Citation
V. Bala et Nm. Kiefer, ON THE EXISTENCE OF UNIVERSALLY CONVERGENT MECHANISMS, Journal of economic dynamics & control, 18(2), 1994, pp. 299-316
Citations number
14
Categorie Soggetti
Economics
Journal title
Journal of economic dynamics & control → ACNP
ISSN journal
01651889
Volume
18
Issue
2
Year of publication
1994
Pages
299 - 316
Database
ISI
SICI code
0165-1889(1994)18:2<299:OTEOUC>2.0.ZU;2-4
Abstract
The problem of finding iterative methods for computing economic equili bria is a longstanding issue. Saari (1985) proved an impossibility res ult, demonstrating that among a large class of mechanisms a universall y convergent one does not exist. We generalize Saari's result by expan ding the class of mechanisms and admit an universally convergent mecha nism. The proof is constructive and employs results from the theory of chaotic dynamical systems.