In an economy with a non-convex production sector, we provide an assumption on each individual producer, which implies that the survival assumption holds true at the aggregate level for general pricing rules. For the marginal pricing rule, we derive this assumption from the bounded marginal...

The problem of computing equilibria for general equilibrium models with incomplete real asset markets, or GEI models for the sake of brevity, is reconsidered. It is shown here that the rank-dropping behavior of the asset return matrix could be dealt with in rather a simple fashion: We first...

Este artículo fue preparado originalmente como material académico para los estudiantes del curso Finanzas Públicas que se imparte en el Programa de Licenciatura de Economía de la Universidad de Costa Rica (Justo Aguilar, 2006). En lo fundamental el ensayo es de carácter normativo y se...