General Equilibrium in Economies with Infinite Dimensional Commodity Spaces: A Truncation Approach

This discussion paper resulted in a publication in the 'Journal of Economic Dynamics and Control', 2003, 27, 423-444. <P> Mostly infinite dimensional economies can be considered limits offinite dimensional economies, in particular when we think of time orproduct differentiation. We investigate conditions under which sequences of quasi-equilibria in finite dimensional economies converge to a quasi-equilibrium in the infinite dimensional economy. It is shown that convergence indeed occurs if the usual continuity assumption concerning the preference relations for finite dimensional commodity spaces is slightly modified.