Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach

Elena del Mercato and Vincenzo Platino

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

Abstract: We consider a general equilibrium model of a private ownership economy with consumption and production externalities. Utility functions and production technologies may be affected by the consumption and production activities of all other agents in the economy. We use differential techniques to show that the set of competitive equilibria is non-empty and compact. Fixing the externalities, the assumptions on utility functions and production technologies are standard in a differentiable framework. Competitive equilibria are written in terms first-order conditions associated with agents' behavior and market clearing conditions, following the seminal work by Smale (1974). Adapting differential techniques to economies with externalities is non trivial and it requires some ingenious adjustments, because the production technologies are not required to be convex with respect to the consumption and production activities of all agents

Keywords: Externalities; private ownership economy; competitive equilibrium; differentiable approach (search for similar items in EconPapers)
JEL-codes: C62 D51 D62 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-12
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2015/15034.pdf (application/pdf)

Related works:
Journal Article: Private ownership economies with externalities and existence of competitive equilibria: a differentiable approach (2017)
Working Paper: Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach (2017)
Working Paper: Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach (2017)
Working Paper: Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach (2017)
Working Paper: Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach (2016)
Working Paper: Private ownership economies with externalities and existence of competitive equilibria: A differentiable approach (2016)
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:15034

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 ().