Existence of competitive equilibrium when incomes may be zero (*)
In a pure exchange economy, there exists a price vector which is a quasi-equilibrium (Debreu 1962), but this may not be a competitive equilibrium if some individuals' demand functions are discontinuous because their incomes may be zero. We show nonetheless, in a pure exchange economy with free disposal, that there is a sequence of prices approaching the quasi-equilibrium along which total excess demands tend to a non-positive limit. <!--ID="" Correspondence to:J. Whittaker-->
Year of publication: |
1996
|
---|---|
Authors: | Whittaker, J. ; Abraham, H. ; Smart, D. R. |
Published in: |
Economic Theory. - Springer. - Vol. 8.1996, 1, p. 177-182
|
Publisher: |
Springer |
Saved in:
Saved in favorites
Similar items by person
-
Existence of competitive equilibrium when incomes may be zero
Abraham, Haim, (1996)
-
Is dynamic stability of Walrasian equilibrium achieved through falling target utilities?
Abraham, Haim, (1989)
-
Existence of competitive equilibrium when incomes may be zero
Abraham, H., (1996)
- More ...