An Index Theorem for Nonconvex Production Economies
Journal of Economic Theory, Vol. 57, pp. 176-196, 1992
Posted: 15 Aug 2007
Abstract
We consider a general equilibrium model in which the production sector may exhibit increasing returns to scale or more general types of nonconvexities. We assume that the firms follow general pricing rules. Under standard assumptions in this model, we establish an index formula, which generalizes similar results on exchange economies and on convex production economies. This formula allows us to deduce an equilibrium existence theorem and a uniqueness condition.
Keywords: pricing rule, convex production economy
JEL Classification: C62, D51
Suggested Citation: Suggested Citation
Jouini, Elyes, An Index Theorem for Nonconvex Production Economies. Journal of Economic Theory, Vol. 57, pp. 176-196, 1992, Available at SSRN: https://ssrn.com/abstract=1007204
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