Core equivalence and welfare properties without divisible goods
We study an economy where all goods entering preferences or production processes are indivisible. Fiat money not entering consumers' preferences is an additional perfectly divisible parameter. We establish a First and Second Welfare Theorem and a core equivalence result for the rationing equilibrium concept introduced in Florig and Rivera (2005a). The rationing equilibrium can be considered as a natural extension of the Walrasian notion when all goods are indivisible at the individual level but perfectly divisible at the level of the entire economy. As a Walras equilibrium with money is a special case of a rationing equilibrium, our results also hold for Walras equilibria with money.
Year of publication: |
2010
|
---|---|
Authors: | Florig, Michael ; Rivera, Jorge |
Published in: |
Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 46.2010, 4, p. 467-474
|
Publisher: |
Elsevier |
Keywords: | Indivisible goods Competitive equilibrium Pareto optimum Core |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Indivisible Goods and Fiat Money
Rivera, Jorge, (2004)
-
Walrasian equilibrium as limit of a competitive equilibrium without divisible goods
Florig, Michael, (2015)
-
Existence of a competitive equilibrium when all goods are indivisible
Florig, Michael, (2015)
- More ...