In contrast to the neo-classical theory of Arrow and Debreu, a model of a private ownership economy is presented, in which production and consumption bundles are treated separately. Each of the two types of bundles is assumed to establish a con- vex cone. Production technologies can convert production bundles into consumption bundles, and the preferences of the consumers are assumed to lie only on the set of consumption bundles. The main theorem of this paper states the existence of a Walrasian equilibrium in this setting.
|Place of Publication||Tilburg|
|Number of pages||37|
|Publication status||Published - 1999|
|Name||CentER Discussion Paper|
- general equilibrium
- salient space