 A multiperiod Drèze ruleEconomic Theory Bulletin, 2015, vol. 3, issue 2, No 2, 129-151 Abstract: Abstract The purpose of this paper is to extend the concept of a Drèze equilibrium to multi-period production economies with incomplete markets. Constrained efficiency cannot serve as a basis for such an extension, because multi-period models tend to violate even weak constrained efficiency requirements. Examples illustrate how the difficulties that arise in the case of sequential trade can be taken into account. Finally, the concept of minimal efficiency, which has been introduced by Dierker et al. (2005) in a two-period model, provides a way to derive an extension of the Drèze rule to finite trees. This is possible because minimal efficiency relies on a planner who can choose the production plan, but who cannot interfere with future consumption otherwise. Keywords: Incomplete markets with production; The objective of a firm; Drèze equilibria with sequential trade; Efficiency and social welfare (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:etbull:v:3:y:2015:i:2:d:10.1007_s40505-015-0073-9 Ordering information: This journal article can be ordered from DOI: 10.1007/s40505-015-0073-9 Access Statistics for this article Economic Theory Bulletin is currently edited by Nicholas C. Yannelis More articles in Economic Theory Bulletin from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC. |
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