Hölderian continuity of solutions of a dynamic Walrasian price equilibrium problem with application

  • Authors:
  • F. Scaramuzzino

  • Affiliations:
  • -

  • Venue:
  • Computers & Mathematics with Applications
  • Year:
  • 2011

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Abstract

This paper considers a qualitative analysis of the solution of a pure exchange general economic equilibrium problem regulated by Walras' law in the dynamic parametric case. The equilibrium conditions that describe this pure exchange economic model are expressed in terms of a time-dependent parametric variational inequality for which a Holderian type stability of the solutions have been proved. For this model, we have also focused our attention on a numerical application with the parameter @n=(@m,@l), where @m represents the variation of the average annual inflation rate and @l represents the variation of the vat share, both considered in Italy in the year 2008. For this numerical example it has been proved the existence of the solutions of the evolutionary parametric variational inequality that describes the equilibrium conditions by means of the direct method and by using MATLAB computation, after a linear interpolation, the curves of equilibria have been visualized.