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**A projected dynamical systems model of general financial equilibrium with stability analysis.**
*(English)*
Zbl 0858.90020

Summary: We present a dynamic model of general financial equilibrium. The model assumes utility-maximizing sectors in the economy that take the prices of the financial instruments as given. The economy, in turn, determines prices of the instruments that balance the supplies and demands. The financial adjustment process is shown to satisfy a projected dynamical system. This methodology is then used to establish, under certain conditions on the utility functions, both the stability and the asymptotical stability of the equilibrium asset, liability, and price pattern. This approach unveils a dynamic approach to competitive equilibrium problems that have, heretofore, been studied, principally, in the static framework of finite-dimensional variational inequality theory.

### MSC:

91B62 | Economic growth models |

91B50 | General equilibrium theory |

91B52 | Special types of economic equilibria |

91G80 | Financial applications of other theories |

### Keywords:

general financial equilibrium; projected dynamical system; asymptotical stability; variational inequality
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\textit{J. Dong} et al., Math. Comput. Modelling 24, No. 2, 35--44 (1996; Zbl 0858.90020)

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### References:

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This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.