A Study on Dynamic General Equilibrium under the Classical Growth Framework

Wu LI ()

MPRA Paper from University Library of Munich, Germany

Abstract: The equilibrium analyses under the classical growth framework mainly concern production processes so far and the utility-maximization of consumers is not considered sufficiently. Treating a consumer as a producer of labor or land-use right etc. with a utility parameter, this paper presents equilibrium formulas taking account of the utility-maximization of consumers, which may facilitate the analysis of dynamic general equilibrium involving both profit-maximizing firms and utility-maximizing consumers under the classical growth framework. For concreteness, some numerical examples with Cobb-Douglas production and utility functions are utilized to illustrate the method of the equilibrium analysis involving utility-maximizing consumers.

Keywords: dynamic general equilibrium; utility; Sraffian system; von Neumann growth model; land rent (search for similar items in EconPapers)
JEL-codes: B51 Q24 D58 C67 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-upt
Date: 2010-09-29
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