A NON-SUBSTITUTION THEOREM WITH NON-CONSTANT RETURNS TO SCALE AND EXTERNALITIES

An input-output model with non-constant returns to scale and externalities is presented, and it is shown that in this model the non-substitution theorem is still valid. More precisely, the quantity side of the theorem, i.e. the proposition on efficiency, remains valid, while there can be no equilibrium prices independent of final demand. Copyright Blackwell Publishing Ltd 2005.

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Year of publication:	2005
Authors:	Fujimoto, Takao ; Silva, José A. ; Villar, Antonio
Published in:	Metroeconomica. - Wiley Blackwell, ISSN 0026-1386. - Vol. 56.2005, 1, p. 25-36
Publisher:	Wiley Blackwell

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005203258