Global analysis and economics III: Pareto Optima and price equilibria

Abstract Among other things a global version of the fundamental theorem of welfare economics is proved. One starts with a pure exchange economy with fixed total resources where hypotheses of differentiability, convexity, and monotonicity are made on the utility functions. Let ʌ be the set of price equilibria where the initial allocation coincides with the final one. Then the map which assigns to such a price equilibrium, the corresponding allocation is a diffeomorphism (a complete correspondence) between ʌ and the set of Pareto Optima.