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Existence of Competitive Equilibrium under Financial Constraints and Increasing Returns

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  • Erdem Basci
  • Nur Ata

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  • Erdem Basci & Nur Ata, 2001. "Existence of Competitive Equilibrium under Financial Constraints and Increasing Returns," Working Papers 0105, Department of Economics, Bilkent University.
    • Handle: RePEc:bil:wpaper:0105
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    File URL: http://www.bilkent.edu.tr/~economics/erdb23032001.pdf
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    References listed on IDEAS

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    1. N. Gregory Mankiw, 1985. "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 529-538.
    2. Werner Antweiler & Daniel Trefler, 2002. "Increasing Returns and All That: A View from Trade," American Economic Review, American Economic Association, vol. 92(1), pages 93-119, March.
    3. Christiano, Lawrence J. & Eichenbaum, Martin & Evans, Charles L., 1997. "Sticky price and limited participation models of money: A comparison," European Economic Review, Elsevier, vol. 41(6), pages 1201-1249, June.
    4. Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-666, September.
    5. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
    6. Vohra, Rajiv, 1992. "Marginal Cost Pricing under Bounded Marginal Returns," Econometrica, Econometric Society, vol. 60(4), pages 859-876, July.
    7. M. Ali Khan & Rajiv Vohra, 1987. "An Extension of the Second Welfare Theorem to Economies with Nonconvexities and Public Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 223-241.
    8. Lawrence J. Christiano & Martin S. Eichenbaum & Charles L. Evans, 1997. "Modeling money," Working Paper Series, Macroeconomic Issues WP-97-17, Federal Reserve Bank of Chicago.
    9. Fuerst, Timothy S., 1992. "Liquidity, loanable funds, and real activity," Journal of Monetary Economics, Elsevier, vol. 29(1), pages 3-24, February.
    10. Paulina Beato, 1982. "The Existence of Marginal Cost Pricing Equilibria with Increasing Returns," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 669-688.
    11. Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
    12. Sotomayor, Marilda de Oliveira, 1987. "On income fluctuations and capital gains with a convex production function," Journal of Economic Dynamics and Control, Elsevier, vol. 11(3), pages 285-312, September.
    13. Erdem Basci & Ismail Saglam, 1998. "On the Importance of Sequencing of Markets in Monetary Economies," Working Papers 9802, Department of Economics, Bilkent University.
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    Cited by:

    1. Erdem Basci & Yusuf Soner Baskaya & Mustafa Kilinc, 2011. "Financial Shocks and Industrial Employment," Working Papers 1112, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.

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    More about this item

    Keywords

    Increasing Returns; Internal Financing; Money Demand; Non-convex Programming; Existence of Equilibrium;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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