An index theorem for nonconvex production economies

Jouini, Elyès

Jouini, Elyès (1992), An index theorem for nonconvex production economies, Journal of Economic Theory, 57, 1, p. 176-196. http://dx.doi.org/10.1016/S0022-0531(05)80047-X

Type

Article accepté pour publication ou publié

Date

1992-06

Journal name

Journal of Economic Theory

Volume

Number

Publisher

Elsevier

Pages

176-196

Abstract (EN)

We consider a general equilibrium model in which the production sector may exhibit increasing returns to scale or more general types of nonconvexities. We assume that the firms follow general pricing rules. Under standard assumptions in this model, we establish an index formula, which generalizes similar results on exchange economies and on convex production economies. This formula allows us to deduce an equilibrium existence theorem and a uniqueness condition.

Subjects / Keywords

Pricing rule; convex production economy

JEL

C62 - Existence and Stability Conditions of Equilibrium
D51 - Exchange and Production Economies