Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks1
نویسندگان
چکیده
This paper studies competitive equilibria of a production economy with aggregate productivity shocks. There is a continuum of consumers who face borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The existence of sequential competitive equilibria is proven and a recursive characterization is established. In particular, it is shown that for any sequential competitive equilibrium, there exists a payoff equivalent sequential competitive equilibrium that is generated by a suitably defined recursive equilibrium with state variables including continuation value.
منابع مشابه
Competitive equilibria of economies with a continuum of consumers and aggregate shocks
This paper studies competitive equilibria of a production economy with aggregate productivity shocks. There is a continuum of consumers who face borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The existence of competitive equilibrium is proven and a recursive characterization is established. In parti...
متن کاملMore on equilibria in competitive markets with externalities and a continuum of agents
Equilibrium existence results are presented for competitive markets with externalities in price and consumption and a measure space of agents. These unify and extend [Balder, E.J., 2003. Existence of competitive equilibria in economies with a measure space of consumers and consumption externalities. Preprint, in press, electronically available at http://www.math.uu.nl/publications/ preprints/12...
متن کاملExistence of Competitive Equilibria in Economies with a Measure Space of Consumers and Consumption Externalities∗
A solution to a long-standing open problem is given by extending Aumann's Walrasian equilibrium existence result for a pure exchange economy with a continuum of consumers [2] to the situation where preferences are allowed to depend upon the consumption profile (as well as the price vector). Our extension includes Schmeidler's existence results for a game with a continuum of players [38]. We stu...
متن کاملStationary Equilibria of Economies with a Continuum of Heterogeneous Consumers
This paper studies stationary equilibria of a production economy with a continuum of heterogeneous consumers subject to borrowing constraints and individual Markov endowment shocks. The existence of a stationary equilibrium is established. The equilibrium interest rate is less than the rate of time preference of the most patient consumer provided a constraint that restricts the borrowing limit ...
متن کاملFour Characterizations of Constrained Pareto Efficiency in Continuum Economies with Widespread Externalities
In continuum economies, widespread externalities are those over which each individual has negligible control. Nash–Walrasian equilibria with lump-sum transfers are defined, and their existence proved. They are then characterized by the property of “f constrained Pareto efficiency” for finite coalitions. More general “private good” Nash– Walrasian equilibria are characterized as private good con...
متن کامل