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A note on Equilibrium with Capital Goods, Storage and Production

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Author Info
Galeazzo Impicciatore
Luca Panaccione

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Abstract

In this paper, we study a two-period economy with production, capital goods and storage. For this economy, we propose a suitable equilibrium concept, and we prove existence of equilibrium. We also show that equality of rates of return for stored capital goods endogenously emerges as a consequence of consumers’ optimizing behavior.

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File URL: http://dep.eco.uniroma1.it/docs/working_papers/Wp99.pdf
File Format: application/pdf
File Function: 2007
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Publisher Info
Paper provided by Sapienza University of Rome, Department of Public Economics in its series Working Papers with number 99.

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Length: 16 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:sap:wpaper:99

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Related research
Keywords: Capital goods; storage; existence; equality of rates of return.;

Find related papers by JEL classification:
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

References listed on IDEAS
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  1. Todd, Michael J., 1979. "A note on computing equilibria in economies with activity analysis models of production," Journal of Mathematical Economics, Elsevier, vol. 6(2), pages 135-144, July. [Downloadable!] (restricted)
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