Existence of a competitive equilibrium in a one sector growth model with heterogeneous agents and irreversible investment

Le Van, C. and Vailakis, Y. (2003) Existence of a competitive equilibrium in a one sector growth model with heterogeneous agents and irreversible investment. Economic Theory, 22(4), pp. 743-771. (doi:10.1007/s00199-002-0355-y)

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Abstract

We prove existence of a competitive equilibrium in a version of a Ramsey (one sector) model in which agents are heterogeneous and gross investment is constrained to be non negative. We do so by converting the infinite-dimensional fixed point problem stated in terms of prices and commodities into a finite-dimensional Negishi problem involving individual weights in a social value function. This method allows us to obtain detailed results concerning the properties of competitive equilibria. Because of the simplicity of the techniques utilized our approach is amenable to be adapted by practitioners in analogous problems often studied in macroeconomics.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Vailakis, Professor Yiannis
Authors: Le Van, C., and Vailakis, Y.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Economic Theory
Publisher:Springer
ISSN:0938-2259
ISSN (Online):1432-0479

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