Geodesics on the equilibrium manifold |
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Authors: | Andrea Loi Stefano Matta |
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Affiliation: | 1. Dipartimento di Matematica e Informatica, University of Cagliari, Italy;2. Dipartimento di Economia, University of Cagliari, viale S. Ignazio 84, 09123 Cagliari, Italy |
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Abstract: | We show the existence of a Riemannian metric on the equilibrium manifold such that a minimal geodesic connecting two (sufficiently close) regular equilibria intersects the set of critical equilibria in a finite number of points. This metric represents a solution to the following problem: given two (sufficiently close) regular equilibria, find the shortest path connecting them which encounters the set of critical equilibria in a finite number of points. Furthermore, this metric can be constructed in such a way to agree, outside an arbitrary small neighborhood of the set of critical equilibria, to any given metric with economic meaning. |
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Keywords: | C61 D50 D51 |
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