Autori
Hammond, Peter J.
Coles, Jeffrey

Titolo
Walrasian equilibrium without survival: existence, efficiency, and remedial policy
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1991 - Fascicolo: 50 - Pagina iniziale: 1 - Pagina finale: 44

Standard general equilibrium theory excludes starvation by assuming that everybody can survive without trade. Because trade cannot harm consumers, they can therefore also survive with trade. Here this assumption is abandoned, and equilibria in which not everybody survives are investigated. A simple example is discussed, along with possible policies which might reduce starvation. Thereafter, for economies with a continuum of agents, the usual results are established — existence, the two fundamental efficiency theorems of welfare economics, and core equivalence. Their validity depends on some special but not very stringent assumptions needed to deal with natural non-convexities in each consumer’s feasible set.



Testo completo: http://hdl.handle.net/1814/389

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