General Equilibrium and Recession Phenomenon

TL;DR

This paper analyzes the structure of economic equilibrium and recession phenomena within exchange economy models, providing theoretical insights and applying them to European economies.

Contribution

It introduces a new theoretical framework for understanding equilibrium structures and recession states in exchange economies.

Findings

Characterizes the structure of equilibrium states.

Describes the properties of recession in economic models.

Applies theory to real European economies.

Abstract

The theorems we proved describe the structure of economic equilibrium in the exchange economy model. We have studied the structure of property vectors under given structure of demand vectors at which given price vector is equilibrium one. On this ground, we describe the general structure of the equilibrium state and give characteristic of equilibrium state describing economic recession. The theory developed is applied to explain the state of the economy in some European countries.