We study welfare and core equivalence for a competitive equilibrium defined on an economy where all commodities are indivisible at the individual level, but perfectly divisible at the aggregate level. In our model is assumed that thereexists a continuum parameter, which can be interpreted as...

We study economies where all commodities are indivisible at the individual level, but perfectly divisible at the aggregate level. Under general hypotheses over the economy, the ain contribution of this paper is the prove that a rationing equilibrium converge to aWalrasian equilibrium of a limit...

Although fiat money is useless in standard Arrow-Debreu models, in this paper we will show that this general conclusion does not hold true when goods are indivisible. In our setting, fiat money is valuable because it facilitates exchange, its price will always be positive and equilibrium...

Without a survival assumption, a Walras equilibrium may fail to exist. Only the existence of a quasi-equilibrium can be proven. Several notions of irreducibility were proposed in order to allow a weakening of the survival assumption. We introduce an irreducibility condition which generalizes...

The standard equivalence result on core and Walras equilibrium allocations uses a non-satiation and an interiority assumption. Konovalov (1998) introduced the rejective core for exchange economies with possibly satiated preferences and proved that there, the fuzzy rejective core coincides with...

We study economies where all commodities are indivisible at the individual level, but perfectly divisible at the aggregate level. Paper (fiat) money which does not influence agents preferences may be used to facilitate exchange. In a parallel paper (Florig and Rivera (2002), we introduced a...