The Second Welfare Theorem with public goods in general economies

In this paper we prove a general version of the Second Welfare Theorem for a non-convex and non-transitive economy, with public goods and other externalities in consumption. For this purpose we use the sub-gradient to the distance function (normal cone) to define the pricing rule in this general context.

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Year of publication:	2010-04
Authors:	Jofré, Alejandro ; Rivera, Jorge
Institutions:	Departamento de Economía, Facultad de Economía y Negocios
Subject:	Non-convex separation \| Second Welfare Theorem \| public goods \| externalities

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	13 pages
Classification:	D11 - Consumer Economics: Theory ; D61 - Allocative Efficiency; Cost-Benefit Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008568526