$title Globally Unstable Equilibria (UNSTMGE,SEQ=155) $onText Globally Unstable Equilibria. Scarf, H, Some Examples of Global Instability of the Competitive Equilibrium. International Economic Review 1 (1960), 157-171. Keywords: mixed complementarity problem, general equilibrium model, global instability, GAMS - MPSGE framework $offText Set i 'index of consumers and goods' / i1*i3 /; Scalar sigma 'elasticity of substitution' / 0.8 / alpha 'budget share of commodity 1' / 0.9 / a "Scarf's parameter a" b "Scarf's parameter b" index 'stability index (negative=unstable)'; a = (1 - sigma)/sigma; b = alpha/(1 - alpha); index = (a + 1)/(a - 1) - b; display a, b, index; $onText $MODEL:UNSTABLE $COMMODITIES: P(I) $CONSUMERS: AGENT(I) $DEMAND:AGENT(I) s:SIGMA E:P(I) Q:1 D:P(I) Q:ALPHA D:P(I++1) Q:(1 - ALPHA) $offText $sysInclude mpsgeset unstable option seed = 1001; p.l(i) = uniform(0,1); $include UNSTABLE.GEN solve unstable using mcp;