IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v48y2016i1d10.1007_s10614-015-9504-9.html
   My bibliography  Save this article

Notes on a ‘Constructive Proof of the Existence of a Collateral Equilibrium’

Author

Listed:
  • Venkatachalam Ragupathy

    (National Chengchi University (NCCU))

  • K. Vela Velupillai

    (New School for Social Research (NSSR))

Abstract

In an interesting article in this journal, Ma (Comput Econ 45:1–30, 2015), claims that a constructive proof of existence of a Collateral Equilibrium (with a Leontief utility function) is provided in the paper. Moreover, there is also the additional claim that ‘on the basis of this proof, we can (and we shall) develop an algorithm for computing that equilibrium’ (ibid, p. 1). Thirdly, the statements that ‘the algorithm is shown by simulation to be effective’, and its effectiveness is demonstrated by ‘the accuracy of the equilibrium it provided’. These claims are, from a recursion theoretic (or computability theory) point of view, meaningless.

Suggested Citation

  • Venkatachalam Ragupathy & K. Vela Velupillai, 2016. "Notes on a ‘Constructive Proof of the Existence of a Collateral Equilibrium’," Computational Economics, Springer;Society for Computational Economics, vol. 48(1), pages 179-181, June.
  • Handle: RePEc:kap:compec:v:48:y:2016:i:1:d:10.1007_s10614-015-9504-9
    DOI: 10.1007/s10614-015-9504-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-015-9504-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10614-015-9504-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. K. Velupillai, 2015. "Negishi’s Theorem and Method: Computable and Constructive Considerations," Computational Economics, Springer;Society for Computational Economics, vol. 45(2), pages 183-193, February.
    2. Pradeep Dubey & John Geanakoplos & Martin Shubik, 2005. "Default and Punishment in General Equilibrium," Econometrica, Econometric Society, vol. 73(1), pages 1-37, January.
    3. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, October.
    4. Wei Ma, 2015. "A Constructive Proof of the Existence of Collateral Equilibrium for a Two-Period Exchange Economy Based on a Smooth Interior-Point Path," Computational Economics, Springer;Society for Computational Economics, vol. 45(1), pages 1-30, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Xuan Wang, 2023. "Support for small businesses amid COVID‐19," Economica, London School of Economics and Political Science, vol. 90(358), pages 612-652, April.
    2. Haider A. Khan, 2007. "Social Accounting Matrix: A Very Short Introduction for Economic Modeling," CIRJE F-Series CIRJE-F-477, CIRJE, Faculty of Economics, University of Tokyo.
    3. Dubey, Pradeep & Sondermann, Dieter, 2009. "Perfect competition in an oligopoly (including bilateral monopoly)," Games and Economic Behavior, Elsevier, vol. 65(1), pages 124-141, January.
    4. Weiye Cheny, 2018. "Credit and Bankruptcy in a Temporary Equilibrium Model," Discussion Papers in Economics and Business 18-23, Osaka University, Graduate School of Economics.
    5. Sudipto Bhattacharya & Pojanart Sunirand, 2012. "Banks, Relative Performance, and Sequential Contagion," Chapters, in: The Challenge of Financial Stability, chapter 7, pages 153-170, Edward Elgar Publishing.
    6. Nuno Gouveia & Abdelkrim Seghir, 2009. "Endogenous Default Penalties in Nominal Incomplete Markets," Annals of Economics and Finance, Society for AEF, vol. 10(2), pages 391-418, November.
    7. Bjarne S. Jensen, 2004. "Pareto Efficiency, Relative Prices, and Solutions to CGE Models," DEGIT Conference Papers c009_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    8. Karim, Mohamed, 2013. "Taxation of agricultural sector in Morocco. An Analysis using a Dynamic Computable General Equilibrium Model," MPRA Paper 45622, University Library of Munich, Germany.
    9. Govinda R. Timilsina & Ram M. Shrestha, 2002. "General equilibrium analysis of economic and environmental effects of carbon tax in a developing country: case of Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(3), pages 179-211, September.
    10. Pradeep Dubey & John Geanakoplos, 2002. "Competitive Pooling: Rothschild-Stiglitz Reconsidered," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1529-1570.
    11. Lorenzo Burlon, 2015. "Ownership networks and aggregate volatility," Temi di discussione (Economic working papers) 1004, Bank of Italy, Economic Research and International Relations Area.
    12. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Alexandros P. Vardoulakis, 2011. "Modeling a Housing and Mortgage Crisis," Central Banking, Analysis, and Economic Policies Book Series, in: Rodrigo Alfaro (ed.),Financial Stability, Monetary Policy, and Central Banking, edition 1, volume 15, chapter 8, pages 215-253, Central Bank of Chile.
    13. C M Dufournaud & J T Quinn & J J Harrington, 1994. "A Partial Equilibrium Analysis of the Impact of Introducing More-Efficient Wood-Burning Stoves into Households in the Sahelian Region," Environment and Planning A, , vol. 26(3), pages 407-414, March.
    14. Edgar Cudmore & John Whalley, 2005. "Border Delays and Trade Liberalization," NBER Chapters, in: International Trade in East Asia, pages 391-406, National Bureau of Economic Research, Inc.
    15. Orrillo, Jaime, 2009. "Making promises in infinite-horizon economies with default and collateral," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(10), pages 3055-3068.
    16. Zemskov Peter & Zemskov Sergey, 2000. "Nizhny Novgorod: Computable General Equilibrium in One Region with Barter and Arrears," EERC Working Paper Series 99-14e, EERC Research Network, Russia and CIS.
    17. Jürgen Eichberger & Klaus Rheinberger & Martin Summer, 2014. "Credit risk in general equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 57(2), pages 407-435, October.
    18. Iraola, Miguel & Torres-Martínez, Juan Pablo, 2013. "Liquidity Contractions, Incomplete Financial Participation and the Prevalence of Negative Equity Non-recourse Loans," MPRA Paper 46838, University Library of Munich, Germany.
    19. Duchin, Faye & Lange, Glenn-Marie, 1995. "The choice of technology and associated changes in prices in the U.S. economy," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 335-357, August.
    20. Eduardo Dávila & Ansgar Walther, 2021. "Corrective Regulation with Imperfect Instruments," NBER Working Papers 29160, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Proof; Constructive; Effective; Existence;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:48:y:2016:i:1:d:10.1007_s10614-015-9504-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.