EFFICIENCY AND CORE PROPERTIES OF VALUATION EQUILIBRIUM WITH INCREASING RETURNS

This paper considers market economies involving the choice of a public environment when there are nonconvexities in production. It discusses the decentralization of efficient allocations by means of valuation equilibrium, adapting to many private goods the notion due to Mas-Colell (1980) which extends the Lindahlian approach to the pure theory of public goods. It is shown that a valuation equilibrium satisfies the two welfare theorems and is in the core.

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Year of publication:	2001-07
Authors:	Notario, Antonio Villar ; Hammond, Peter
Institutions:	Instituto Valenciano de Investigaciones Económicas (IVIE)
Subject:	Valuation Equilibrium \| Increasing Returns to Scale \| Efficiency

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Extent:	application/pdf
Series:	Working Papers. Serie AD.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published by Ivie 20 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005731420