Applications to Economics

Abstract

The concluding chapter of this book is devoted to applications of modern techniques of variational analysis and generalized differentiation to competitive equilibrium models of welfare economics involving nonconvex economies with infinite-dimensional commodity spaces. Note that economic modeling has always been a challenging territory for applications of optimization theory, variational methods, and generalized differential constructions. In particular, convex models of welfare economics of the type considered in this chapter were among the most important motivations for the development of convex analysis in the beginning of the 1950s. Since that time such models have been an attractive area for applications of advanced variational and generalized differential techniques in convex and nonconvex settings.