Browsing by Subject "Competitive equilibrium"
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Item Open Access Existence in an overlapping generations model with production(Bilkent University, 1995) Abdulkadiroğlu, AtilaThis thesis proves the existence of competitive equilibrium in an overlapping generations model (OLG) with production. In the proof, existence of equilibrium in the classical Arrow-Debreu Model is essential, and the work is similar in spirit to that-presented in Balasko, Cass and Shell [2], except some tricks used in the proof. The assumptions do not deviate from standard assumptions, so the model can be taken as a first step in developing more general models.Item Open Access Existence, optimality and dynamics of equilibria with endogenous time preference(Elsevier BV, 2011) Erol, S.; Van, C. L.; Saglam, C.This paper studies the dynamic implications of the endogenous rate of time preference depending on the stock of capital, in a one-sector growth model. The planner's problem is presented and the optimal paths are characterized. We prove that there exists a critical value of initial stock, in the vicinity of which, small differences lead to permanent differences in the optimal path. Indeed, we show that a development trap can arise even under a strictly convex technology. In contrast with the early contributions that consider recursive preferences, the critical stock is not an unstable steady state so that if an economy starts at this stock, an indeterminacy will emerge. We also show that even under a convex-concave technology, the optimal path can exhibit global convergence to a unique stationary point. The multipliers system associated with an optimal path is proven to be the supporting price system of a competitive equilibrium under externality and detailed results concerning the properties of optimal (equilibrium) paths are provided. We show that the model exhibits globally monotone capital sequences yielding a richer set of potential dynamics than the classic model with exogenous discounting. (C) 2011 Elsevier B.V. All rights reserved.Item Open Access A theory of a heterogeneous divisible commodity exchange economy(Elsevier BV, 2011) Husseinov, F.In theoretical land economics the existence of a competitive equilibrium with an additive price is considered problematic. This paper studies the exchange and allocation of a heterogeneous divisible commodity such as land, which is modeled as a measurable space. In a 'land' trading economy with unordered convex preferences, the existence of a competitive equilibrium with an additive equilibrium price is proved. This paper demonstrates also the existence of a weak core and a fair allocation. (C) 2010 Elsevier B.V. All rights reserved.