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General Equilibrium in Economies with Infinite Dimensional Commodity Spaces: A Truncation Approach

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Author Info
Gerard van der Laan () (Vrije Universiteit Amsterdam)
Cees Withagen () (Vrije Universiteit Amsterdam and Tilburg University)

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Abstract

Mostly infinite dimensional economies can be considered limits of finite dimensional economies, in particular when we think of time or product differentiation. We investigate conditions under which sequences of quasi-equilibria in finite dimensional economies converge to a quasi-equilibrium in the infinite dimensional economy. It is shown that convergence indeed occurs if the usual continuity assumption concerning the preference relations for finite dimensional commodity spaces is slightly modified.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-023/1.

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Date of creation: 22 Mar 2000
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Handle: RePEc:dgr:uvatin:20000023

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Related research
Keywords: general equilibrium; truncation; infinite dimensional commodity space;

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References listed on IDEAS
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  1. Balasko, Yves, 1997. "Equilibrium analysis of the infinite horizon model with smooth discounted utility functions," Journal of Economic Dynamics and Control, Elsevier, vol. 21(4-5), pages 783-829, May. [Downloadable!] (restricted)
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  2. van Geldrop, Jan H. & Withagen, Cees A. A. M., 1994. "General equilibrium in an economy with exhaustible resources and an unbounded horizon," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 1011-1035, September. [Downloadable!] (restricted)
  3. Balasko, Yves & Cass, David & Shell, Karl, 1980. "Existence of competitive equilibrium in a general overlapping-generations model," Journal of Economic Theory, Elsevier, vol. 23(3), pages 307-322, December. [Downloadable!] (restricted)
  4. Aliprantis, Charalambos D. & Brown, Donald J. & Burkinshaw, Owen, 1987. "Edgeworth equilibria in production economies," Journal of Economic Theory, Elsevier, vol. 43(2), pages 252-291, December. [Downloadable!] (restricted)
  5. Aliprantis, Charalambos D & Brown, Donald J & Burkinshaw, Owen, 1987. "Edgeworth Equilibria," Econometrica, Econometric Society, vol. 55(5), pages 1109-37, September. [Downloadable!] (restricted)
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