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EXISTENCE OF COMPETITIVE EQUILIBRIUM IN AN OPTIMAL GROWTH MODEL WITH HETEROGENEOUS AGENTS AND ENDOGENOUS LEISURE

Published online by Cambridge University Press:  09 January 2012

Aditya Goenka ,
Cuong Le Van  and
Manh-Hung Nguyen
Aditya Goenka
Affiliation:
National University of Singapore
Cuong Le Van
Affiliation:
CNRS VCREME and Hanoi Water Resources University
Manh-Hung Nguyen*
Affiliation:
Toulouse School of Economics (LERNA-INRA) VCREME and Hanoi Water Resources University
*
Address correspondence to: Manh-Hung Nguyen, Toulouse School of Economics, 21 allée de Brienne, 31000 Toulouse, France; email: mhnguyen@toulouse.inra.fr.
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Abstract

This paper proves the existence of competitive equilibrium in a single-sector dynamic economy with heterogeneous agents, elastic labor supply, and complete asset markets. The method of proof relies on some recent results concerning the existence of Lagrange multipliers in infinite-dimensional spaces and their representation as a summable sequence and a direct application of the inward-boundary fixed point theorem.

Keywords

Optimal Growth ModelLagrange MultipliersCompetitive EquilibriumElastic Labor Supply
Type
Articles
Information
Macroeconomic Dynamics , Volume 16 , Supplement S1: Nonlinear Dynamics in Equilibrium Models , April 2012 , pp. 33 - 51
Copyright
Copyright © Cambridge University Press 2012

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References

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