Computing equilibria of semi-algebraic economies using triangular decomposition and real solution classification

In this paper, we are concerned with the problem of determining the existence of multiple equilibria in economic models. We propose a general and complete approach for identifying multiplicities of equilibria in semi-algebraic economies, which may be expressed as semi-algebraic systems. The approach is based on triangular decomposition and real solution classification, two powerful tools of algebraic computation. Its effectiveness is illustrated by three examples of application. (C) 2014 Elsevier B.V. All rights reserved.