On the existence of a Ramsey equilibrium with endogenous labor supply and borrowing constraints

Stefano Bosi () and Cuong Le van
Additional contact information
Stefano Bosi: THEMA - Université de Cergy-Pontoise, https://thema.u-cergy.fr/

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: In this paper, we study the existence of an intertemporal equilibrium in a Ramsey model with heterogenous discounting, elastic labor supply and borrowing constraints. Applying a fixed-point argument by Gale and Mas-Colell (1975), we prove the existence of an equilibrium in a truncated bounded economy. This equilibrium is also an equilibrium of any unbounded economy with the same fundamentals. Finally, we prove the existence of an equilibrium in an infinite-horizon economy as a limit of a sequence of truncated economies. On the one hand, our paper generalizes Becker et al. (1991) because of the elastic labor supply and, on the other hand, Bosi and Seegmuller (2010) because of a proof of global existence. Our methodology can be also applied to other Ramsey models with different market imperfections

Keywords: Existence of equilibrium; Ramsey model; heterogeneous agents; endogenous labor supply; borrowing constraint (search for similar items in EconPapers)
JEL-codes: C62 D31 D91 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-07
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2011/11045.pdf (application/pdf)

Related works:
Working Paper: On the Existence of a Ramsey Equilibrium with Endogenous Labor Supply and Borrowing Constraints (2011)
Working Paper: On the existence of a Ramsey equilibrium with endogenous labor supply and borrowing constraints (2011)
Working Paper: On the existence of a Ramsey equilibrium with endogenous labor supply and borrowing constraints (2011)
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:mse:cesdoc:11045

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().