IDEAS home Printed from https://ideas.repec.org/p/mse/cesdoc/09076.html
   My bibliography  Save this paper

The Survival Assumption in Intertemporal Economies

Author

Abstract

In an economy with a non-convex production sector, we provide an assumption on each individual producer, which implies that the survival assumption holds true at the aggregate level for general pricing rules. For the marginal pricing rule, we derive this assumption from the bounded marginal productivity of inputs. We apply this approach to intertemporal economies and we show how our assumption fits well with the time structure leading to a tractable existence result of equilibria, which could be apply to discrete dynamical growth models

Suggested Citation

  • Jean-Marc Bonnisseau & Alexandrine Jamin, 2009. "The Survival Assumption in Intertemporal Economies," Documents de travail du Centre d'Economie de la Sorbonne 09076, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:09076
    as

    Download full text from publisher

    File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2009/09076.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. A. P. Lerner, 1936. "A Note on Socialist Economics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(1), pages 72-76.
    2. Bonnisseau, Jean-Marc & Cornet, Bernard, 1990. "Existence of Marginal Cost Pricing Equilibria: The Nonsmooth Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 685-708, August.
    3. Oskar Lange, 1936. "On the Economic Theory of Socialism," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(1), pages 53-71.
    4. Cornet, Bernard, 1988. "General equilibrium theory and increasing returns : Presentation," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 103-118, April.
    5. Vohra, Rajiv, 1992. "Marginal Cost Pricing under Bounded Marginal Returns," Econometrica, Econometric Society, vol. 60(4), pages 859-876, July.
    6. Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2017. "Existence of equilibrium in OLG economies with increasing returns," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 111-129, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David, Laurent & Le Breton, Michel & Merillon, Olivier, 2007. "Kolm as a Contributor to Public Utility Pricing, Second Best Culture and the Theory of Regulation," IDEI Working Papers 490, Institut d'Économie Industrielle (IDEI), Toulouse.
    2. Jean-Marc Bonnisseau & Alexandrine Jamin, 2004. "General equilibrium theory and increasing returns: an alternative to the survival assumption," Cahiers de la Maison des Sciences Economiques b04017, Université Panthéon-Sorbonne (Paris 1).
    3. Bonnisseau, J.-M. & Cornet, B., 2008. "Existence of equilibria with a tight marginal pricing rule," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 613-624, July.
    4. J. M. Bonnisseau & A. Jamin, 2008. "Equilibria with Increasing Returns: Sufficient Conditions on Bounded Production Allocations," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1033-1068, December.
    5. Hichem Ben-El-Mechaiekh & Philippe Bich & Monique Florenzano, 2009. "General equilibrium and fixed-point theory: a partial survey," PSE-Ecole d'économie de Paris (Postprint) hal-00755998, HAL.
    6. Antonio Villar, 1994. "Existence and efficiency of equilibrium in economics with increasing returns to scale: an exposition," Investigaciones Economicas, Fundación SEPI, vol. 18(2), pages 205-243, May.
    7. Jean-Marc Bonnisseau & Bernard Cornet, 2006. "Existence of equilibria with a tight marginal," Cahiers de la Maison des Sciences Economiques b06022, Université Panthéon-Sorbonne (Paris 1).
    8. Jael, Paul, 2015. "Socialist Calculation and Market Socialism," MPRA Paper 64255, University Library of Munich, Germany.
    9. Tian, Guoqiang, 2004. "On the Informational Requirements of Decentralized Pareto-Satisfactory Mechanisms in Economies with Increasing Returns," MPRA Paper 41226, University Library of Munich, Germany, revised Oct 2006.
    10. Acurio Vásconez, Verónica & Giraud, Gaël & Mc Isaac, Florent & Pham, Ngoc-Sang, 2015. "The effects of oil price shocks in a new-Keynesian framework with capital accumulation," Energy Policy, Elsevier, vol. 86(C), pages 844-854.
    11. Peter Zweifel & H. E. Frech, 2016. "Why ‘Optimal’ Payment for Healthcare Providers Can Never be Optimal Under Community Rating," Applied Health Economics and Health Policy, Springer, vol. 14(1), pages 9-20, February.
    12. Brown, Donald J. & Heller, Walter P. & Starr, Ross M., 1992. "Two-part marginal cost pricing equilibria: Existence and efficiency," Journal of Economic Theory, Elsevier, vol. 57(1), pages 52-72.
    13. Jacques H. Dreze, 1995. "Forty Years of Public Economics: A Personal Perspective," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 111-130, Spring.
    14. Jean-Marc Bonnisseau & Bernard Cornet & Marc-Olivier Czarnecki, 2007. "The marginal pricing rule revisited," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(3), pages 579-589, December.
    15. Hans-Jürgen Salchow, 2005. "Non-existence of equilibria with free elimination," Post-Print halshs-00195903, HAL.
    16. Samuelson, Paul, 1995. "Some uneasiness with the Coase Theorem," Japan and the World Economy, Elsevier, vol. 7(1), pages 1-7, May.
    17. Murty, Sushama, 2010. "Externalities and fundamental nonconvexities: A reconciliation of approaches to general equilibrium externality modeling and implications for decentralization," Journal of Economic Theory, Elsevier, vol. 145(1), pages 331-353, January.
    18. Gaël Giraud & Cécile Renouard, 2011. "In search of an alternative to shareholder value maximization," Post-Print hal-00609153, HAL.
    19. Nur Ata, H. & Basci, Erdem, 2004. "Existence of competitive equilibrium under financial constraints and increasing returns," Journal of Economic Dynamics and Control, Elsevier, vol. 28(12), pages 2457-2473, December.
    20. Jean-Marc Bonnisseau, 2000. "The Marginal Pricing Rule in Economies with Infinitely Many Commodities," Econometric Society World Congress 2000 Contributed Papers 0262, Econometric Society.

    More about this item

    Keywords

    General equilibrium theory; increasing returns; survival assumption; marginal pricing; general pricing rules;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mse:cesdoc:09076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucie Label (email available below). General contact details of provider: https://edirc.repec.org/data/cenp1fr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.