We analyze under which conditions a given vector field can be disaggregated as a linear combination of gradients. This problem is typical of aggregation theory, as illustrated by the literature on the characterization of aggregate market demand and excess demand. We argue that exterior differential calculus provides very useful tools to address these problems. In particular, we show, using these techniques, that any analytic mapping in satisfying Walras Law can be locally decomposed as the sum of individual, utility‐maximizing market demand functions. In addition, we show that the result holds for arbitrary (price‐dependent) income distributions, and that the decomposition can be chosen such that it varies continuously with the mapping. Finally, when income distribution can be freely chosen, then decomposition requires only /2 agents.
MLA
Chiappori, P. A., and I. Ekeland. “Aggregation and Market Demand: An Exterior Differential Calculus Viewpoint.” Econometrica, vol. 67, .no 6, Econometric Society, 1999, pp. 1435-1457, https://doi.org/10.1111/1468-0262.00085
Chicago
Chiappori, P. A., and I. Ekeland. “Aggregation and Market Demand: An Exterior Differential Calculus Viewpoint.” Econometrica, 67, .no 6, (Econometric Society: 1999), 1435-1457. https://doi.org/10.1111/1468-0262.00085
APA
Chiappori, P. A., & Ekeland, I. (1999). Aggregation and Market Demand: An Exterior Differential Calculus Viewpoint. Econometrica, 67(6), 1435-1457. https://doi.org/10.1111/1468-0262.00085
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.