The CATASSTROPHE MAP: PROPERTIES of a PRODUCTION MODEL with UNCERTAINTY

Abstract

The paper generalizes the natural projection approach
introduced by Balasko [4] for study of the qualitative equilibrium
structure of exchange economies to a two period private
ownership production model with uncertainty. It shows that long
run equilibrium properties of the production model are those of
the pure exchange economy with production adjusted demand
functions. Associated with every long run equilibrium there exist
a finite, odd number of short run equilibria.