The Generalized Second Fundamental Theorem of Welfare Economics for nonconvex economies
In an economy that has an infinite number of commodities due, for example, to product characteristic differentiation, time and/or spatial considerations, and with arbitrary preference and production sets; the Generalized Second Theorem of Welfare Economics for nonconvex economies is substantiated by employing the Mordukhovich extremal point theorem to establish a positive marginal price system derived from the Mordukhovich normal cone for an economy that has an Asplund-Riesz commodity space, which is a special class of Banach spaces. This approach generalizes some previous generalized second fundamental theorems of welfare economics for nonconvex economies, when restricted to an Asplund-Riesz commodity space. Furthermore, this includes some of the important economic commodity spaces that have positive cones with empty interiors; it especially applies to convex economies where the positive cone has either an empty or a nonempty interior. In addition, these results generalize the finite dimensional second fundamental welfare theorem for nonconvex and convex economies.
|Year of publication:||
|Authors:||Malcolm, Glenn G|
Wayne State University
|Type of publication:||Other|
ETD Collection for Wayne State University
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