Existence of competitive equilibrium under financial constraints and increasing returns

Ata, HN; Başçı, Erdem

doi:10.1016/j.jedc.2003.11.004

Existence of competitive equilibrium under financial constraints and increasing returns

Ata H., Başçı E.

JOURNAL OF ECONOMIC DYNAMICS & CONTROL, cilt.28, sa.12, ss.2457-2473, 2004 (SSCI, Scopus)

Yayın Türü: Makale / Tam Makale
Cilt numarası: 28 Sayı: 12
Basım Tarihi: 2004
Doi Numarası: 10.1016/j.jedc.2003.11.004
Dergi Adı: JOURNAL OF ECONOMIC DYNAMICS & CONTROL
Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
Sayfa Sayıları: ss.2457-2473
Anahtar Kelimeler: increasing returns, limited participation, money, MARGINAL COST, ECONOMIES, PRICE
Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
TED Üniversitesi Adresli: Hayır

Özet

This paper studies a 'factor cost in advance' model with increasing returns in production. In the model both partial equilibrium and general equilibrium may exist since working capital of firms limit their input demand. We provide a sufficient condition for the existence of partial equilibrium of a firm operating on a non-convex choice set. Furthermore we establish the existence and uniqueness of competitive equilibrium in the special case of logarithmic utility. (C) 2004 Elsevier B.V. All rights reserved.