Sensitivity analysis of boundary equilibria
- This paper studies the sensitivity of economic equilibria to perturbations when the implicit function theorem cannot be applied on account of the presence of boundaries. It presents results from the mathematical programming literature which provide conditions under which equilibria are robust to perturbation and are locally unique Lipschitz continuous functions of parameters. Economic applications include search equilibrium, Cournot equilibrium and general equilibrium.
- Publication status:
- Peer review status:
- Peer reviewed
- Accepted Manuscript
- Copyright holder:
- Springer-Verlag Berlin Heidelberg
- Copyright date:
Copyright © 2016 Springer-Verlag Berlin Heidelberg.
This is the accepted manuscript version of the article. The final version is available online from Springer at: https://doi.org/10.1007/s00199-016-0987-y
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