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Comparing Competitive Equilibria with Equilibria of Labor-Managed and Capital-Managed Economies in OLG Models

Author

Listed:
  • Bertrand Crettez

    (L.I.B.R.E., University of Franche-Comte)

  • Pierre-Andre Jouvet

    (GAINS, Universit¡äe du Maine and GREQAM-Marseille)

Abstract

This paper compares a private ownership (competitive) economy, a labormanaged economy and a capital-managed economy in an overlapping-generations framework. Under standard and rather weak assumptions, the sets of equilibria for the two first economies are identical, in line with a result already shown in a static setting. We also prove that the set of competitive equilibria are included in the set of equilibria of capital-managed economies, but the converse is not true. However, using some smoothness assumptions, we show that an equilibrium of a capital-managed economy may be a competitive equilibrium.

Suggested Citation

  • Bertrand Crettez & Pierre-Andre Jouvet, 2006. "Comparing Competitive Equilibria with Equilibria of Labor-Managed and Capital-Managed Economies in OLG Models," Annals of Economics and Finance, Society for AEF, vol. 7(2), pages 339-355, November.
    • Handle: RePEc:cuf:journl:y:2006:v:7:i:2:p:339-355
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    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 467-467.
    2. Meade, James E, 1972. "The Theory of Labour-Managed Firms and of Profit Sharing," Economic Journal, Royal Economic Society, vol. 82(325), pages 402-428, Supplemen.
    3. Dreze, Jacques H, 1976. "Some Theory of Labor Management and Participation," Econometrica, Econometric Society, vol. 44(6), pages 1125-1139, November.
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    Keywords

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    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • P12 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Enterprises
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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