6533b7d1fe1ef96bd125c0fc

RESEARCH PRODUCT

Existence of competitive equilibrium in a non-optimal one-sector economy without conditions on the distorted marginal product of capital

Lisa MorhaimLisa MorhaimBertrand Crettez

subject

Sociology and Political ScienceRomerGeneral Social SciencesCompetitive equilibriumMathematical proofMicroeconomicsDiscrete time and continuous timeEconomyValue (economics)EconomicsStatistics Probability and UncertaintyMathematical economicsGeneral PsychologyRegressive taxMarginal product of capital

description

Abstract This paper develops a method for proving the existence of competitive equilibrium in a distorted/non-optimal one-sector economy–a discrete time variant of the Romer model–without conditions on the equilibrium value of the marginal product of capital. Existence is obtained under weaker conditions than in Le Van et al. (2002) . Moreover, we provide an existence result for an economy with a regressive tax studied in Santos (2002) . The proofs rely on ideas of Becker and Boyd (1997) .

yearjournalcountryeditionlanguage
2012-05-01Mathematical Social Sciences
https://doi.org/10.1016/j.mathsocsci.2011.11.002