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General Equilibrium with Multi-Member Households and Production

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  • Hans Gersbach
  • Hans Haller

Abstract

We consider firms and multi-member households operating in a competitive market environment. Households are endowed with resources (commodity bundles) and shares of firm ownership. Household members are characterized by individual preferences, possibly with intra-household consumption externalities. Household decisions adhere to the collective rationality model. Existence of general equilibrium and validity of the first welfare theorem are investigated.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-11/cesifo1_wp3659.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3659.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3659

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Keywords: household behavior; general equilibrium; production;

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  1. Apps,Patricia & Rees,Ray, 2009. "Public Economics and the Household," Cambridge Books, Cambridge University Press, number 9780521887878, Fall.
  2. Gersbach, Hans & Haller, Hans, 2001. "Collective Decisions and Competitive Markets," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 347-68, April.
  3. Michele Gori, 2010. "Endogenous household formation and inefficiency in a general equilibrium model," Working Papers - Mathematical Economics 2010-09, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa, revised Oct 2010.
  4. Xiong, Siyang & Zheng, Charles Zhoucheng, 2007. "Core Equivalence Theorem with Production," Staff General Research Papers 12697, Iowa State University, Department of Economics.
  5. Hans Gersbach & Hans Haller, 2009. "Club Theory and Household Formation," CER-ETH Economics working paper series 09/110, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  6. Hans Gersbach & Hans Haller, 2003. "Competitive Markets, Collective Decisions and Group Formation," CESifo Working Paper Series 953, CESifo Group Munich.
  7. Hans Gersbach & Hans Haller, 2009. "Bargaining power and equilibrium consumption," Social Choice and Welfare, Springer, vol. 33(4), pages 665-690, November.
  8. Michele Gori & Antonio Villanacci, 2011. "A bargaining model in general equilibrium," Economic Theory, Springer, vol. 46(3), pages 327-375, April.
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