Arbitrage and Equilibrium in Economies with Externalities.

We introduce consumption externalities into a general equilibrium model with arbitrary consumption sets. To treat the problem of existence of equilibrium, a condition of no unbounded arbitrage, extending the condition of Page (1987) and Page and Wooders (1993, 1996) is defined. It is proven that this condition is sufficient for the existence of an equilibrium and both necessary and sufficient for compactness of the set of rational allocations.

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Year of publication:	2001
Authors:	Le Van, C. ; Page, F.H. Jr. ; Wooders, M.
Institutions:	Department of Economics, University of Warwick
Subject:	CONSUMPTION \| EXTERNALITIES \| ARBITRAGE

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Series:	The Warwick Economics Research Paper Series (TWERPS).
Type of publication:	Book / Working Paper
Language:	English
Notes:	15 pages
Classification:	E21 - Consumption; Saving ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies
Source:	RePEc - Research Papers in Economics

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