This paper constructs a closed set Y in R' such that for all y in the boundary of Y Clarke's normal cone to Y at y is equal to R'+. If Y is the production set of a tirm, then the marginal cost pricing rule imposes no restriction. The existence of Y is shown to be equivalent to the existence of a...

We address the problem of a social planner who, as in Weitzman (2001), gathers data on experts' discount rates and wants to infer the socially efficient consumption discount rate. We propose an ‘equilibrium approach' and we analyse the expression and the properties of the resulting...

In this paper we eliminate the free disposal assumption in a general equilibrium model in which the production sector may exhibit increasing returns to scale or more general types of nonconvexities and where the firms follow general pricing rules. Under standard assumptions in this framework, we...