THE COMPUTATION OF A CONTINUUM OF CONSTRAINED EQUILIBRIA

The equilibria of a model of an exchange economy with price rigidities are called constrained equilibria. A simplicial algorithm on the unit cube is proposed to compute an approximation of a continuum of zero p oints of the excess demand correspondence of such an economy. This con tinuum of zero points corresponds to a continuum of constrained equili bria of the economy, linking the two so-called trivial equilibria. Mor eover, the convergence properties of the algorithm and the accuracy of the approximate constrained equilibria obtained by the algorithm are discussed. Finally, an example is given as an illustration.