EconPapers    
Economics at your fingertips  
 

Peer group effects in applied general equilibrium

Elizabeth Caucutt ()

Economic Theory, 2001, vol. 17, issue 1, 25-51

Abstract: In this paper, I develop an applied general equilibrium environment with peer group effects. The application I consider is schooling. The framework used here is general equilibrium with clubs. I establish the existence of equilibrium for the economy with a finite number of school types. This result is then extended to the case where the set of school types is a continuum. The two welfare theorems are shown to hold for both economies. To compute the equilibrium, I construct a Negishi mapping from the set of weights on individual type's utility to the set of transfers that support the corresponding Pareto allocations as competitive equilibria with transfers. Because this mapping is a correspondence, a version of Scarf's algorithm is used to find a competitive equilibrium.

Keywords: Education; Peer effects; Applied general equilibrium; Clubs. (search for similar items in EconPapers)
JEL-codes: D58 C62 I2 (search for similar items in EconPapers)
Date: 2000-11-14
Note: Received: June 9, 1999; revised version: March 13, 2000
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://link.springer.de/link/service/journals/00199/papers/1017001/10170025.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:17:y:2001:i:1:p:25-51

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-03-29
Handle: RePEc:spr:joecth:v:17:y:2001:i:1:p:25-51