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- Valuation Equlibrium Revisited

Author

Listed:
  • Antonio Villar Notario

    (Instituto Valenciano de Investigaciones Económicas)

  • Peter Hammond

    (Stanford University)

Abstract

This paper extends the notion of valuation equilibrium which applies to market economies involving the choice of a public environment. Unlike some other recent work, it is assumed here that consumers and firms evaluate alternative environments taking market prices as given (hence this notion is closer to that of competitive equilibria). It is shown that valuation equilibria with balanced tax schemas yield eficient allocations and that eficient allocations can be decentralized as valuation equilibria, with tax schemas that may be unbalanced.

Suggested Citation

  • Antonio Villar Notario & Peter Hammond, 1998. "- Valuation Equlibrium Revisited," Working Papers. Serie AD 1998-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1998-24
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1998-24.pdf
    File Function: Fisrt version / Primera version, 1998
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    References listed on IDEAS

    as
    1. Dreze, Jacques H & Hagen, Kare P, 1978. "Choice of Product Quality: Equilibrium and Efficiency," Econometrica, Econometric Society, vol. 46(3), pages 493-513, May.
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    3. Peter J. Hammond & Antonio Villar, 1998. "Efficiency with Non‐Convexities: Extending the “Scandinavian Consensus” Approaches," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 11-32, March.
    4. Antonio Villar, 2007. "Competitive Pricing," Working Papers 07.08, Universidad Pablo de Olavide, Department of Economics.
    5. Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
    6. Vega-Redondo, Fernando, 1987. "Efficiency and nonlinear pricing in nonconvex environments with externalities: A generalization of the Lindahl equilibrium concept," Journal of Economic Theory, Elsevier, vol. 41(1), pages 54-67, February.
    7. Diamantaras, Dimitrios & Gilles, Robert P, 1996. "The Pure Theory of Public Goods: Efficiency, Dencentralization, and the Core," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 851-860, November.
    8. Diamantaras Dimitrios & Wilkie Simon, 1994. "A Generalization of Kaneko's Ratio Equilibrium for Economies with Private and Public Goods," Journal of Economic Theory, Elsevier, vol. 62(2), pages 499-512, April.
    9. Kaneko, Mamoru, 1977. "The ratio equilibrium and a voting game in a public goods economy," Journal of Economic Theory, Elsevier, vol. 16(2), pages 123-136, December.
    10. Andreu Mas-Colell, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 625-641.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Antonio Villar Notario & Peter Hammond, 2001. "Efficiency And Core Properties Of Valuation Equilibrium With Increasing Returns," Working Papers. Serie AD 2001-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Maria Graziano & Maria Romaniello, 2012. "Linear cost share equilibria and the veto power of the grand coalition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 269-303, February.
    3. Antonio Villar Notario, 2000. "On The Efficiency Of Market Equilibrium In Production Economies," Working Papers. Serie AD 2000-17, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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