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...

This book deals with the analysis of production economies in which firms may exhibit increasing returns to scale, or other forms of non-convexities. The study focuses on the existence and efficiency of equilibrium allocations, and the comparison with the standard competitive equilibrium model. A...

This paper argues that the conventional definition of the elasticity of complementarity is not well suited to deal with the case of increasing returns. It proposes a slightly different formula, that uses a distance function formulation instead of a production function. The proposed definition...