A geometric approach to the transfer problem for a finite number of\n traders

We present a complete characterization of the classical transfer problem for\nan exchange economy with an arbitrary finite number of traders. Our method is\ngeometric, using an equilibrium manifold developed by Debreu, Mas-Colell, and\nBalasko. We show that for a regular equilibrium the transfer problem arises if\nand only if the index at the equilibrium is $-1$. This implies that the\ntransfer problem does not happen if the equilibrium is Walras tatonnement\nstable. Our result generalizes Balasko's analogous result for an exchange\neconomy with two traders.\n