General existence of competitive equilibrium in the growth model with an endogenous labor-leisure choice
| Autor: | Manh-Hung Nguyen, Aditya Goenka |
|---|---|
| Přispěvatelé: | University of Birmingham [Birmingham], Toulouse School of Economics (TSE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), ANR-17-EURE-0010,CHESS,Toulouse Graduate School défis en économie et sciences sociales quantitatives(2017) |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Lagrange multipliers Inada conditions Competitive equilibrium symbols.namesake Argument Bor supply 0502 economics and business Economics Optimal growth Differentiable function 050207 economics B- ECONOMIE ET FINANCE 050205 econometrics Applied Mathematics Homogeneity (statistics) 05 social sciences Elastic la [SHS.ECO]Humanities and Social Sciences/Economics and Finance Cover (topology) Lagrange multiplier 8. Economic growth symbols Mathematical economics |
| Zdroj: | Journal of Mathematical Economics Journal of Mathematical Economics, Elsevier, 2020, 91, pp.90-98. ⟨10.1016/j.jmateco.2020.08.004⟩ |
| ISSN: | 0304-4068 |
| Popis: | National audience; We prove the existence of competitive equilibrium in the canonical optimal growth model with elastic labor supply under general conditions. In this model, strong conditions to rule out corner solutions are often not well justied. We show using a separation argument that there exist Lagrange multipliers that can be viewed as a system of competitive prices. Neither Inada conditions, nor strict concavity, nor homogeneity, nor dierentiability are required for existence of a competitive equilibrium. Thus, we cover important specications used in the macroeconomics literature for which existence of a competitive equilibrium is not well understood. We give examples to illustrate the violation of the conditions used in earlier existence results but where a competitive equilibrium can be shown to exist following theapproach in this paper. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect