IDEAS home Printed from https://ideas.repec.org/p/hal/cesptp/halshs-00195903.html
   My bibliography  Save this paper

Non-existence of equilibria with free elimination

Author

Listed:
  • Hans-Jürgen Salchow

    (CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This work is concerned in the existence problem of equilibria for economies with increasing returns to scale. The consequences of relaxing the free disposal assumption are investigated. It is sown that the free disposal assumption can not be dropped, not even relaxed to the assumption of free elimination, without risking that equilibria may fail to exist. This may give new insight to the work of Giraud (2000) and Jouini (1992), because they proved the existence of equilibria for economies without free disposal assuming the production sets to verify (even weaker forms of) free elimination.

Suggested Citation

  • Hans-Jürgen Salchow, 2005. "Non-existence of equilibria with free elimination," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00195903, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00195903
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00195903
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00195903/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. GIRAUD, Gaël, 2000. "An algebraic index theorem for non-smooth economies," LIDAM Discussion Papers CORE 2000016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Jouini, Elyes, 1992. "Existence of equilibria in nonconvex economies without free disposal," Economics Letters, Elsevier, vol. 38(1), pages 37-42, January.
    3. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702.
    4. repec:dau:papers:123456789/54 is not listed on IDEAS
    5. Bonnisseau, Jean-Marc & Cornet, Bernard, 1990. "Existence of Marginal Cost Pricing Equilibria: The Nonsmooth Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 685-708, August.
    6. Shafer, Wayne J, 1974. "The Nontransitive Consumer," Econometrica, Econometric Society, vol. 42(5), pages 913-919, September.
    7. Beato, Paulina & Mas-Colell, Andreu, 1985. "On marginal cost pricing with given tax-subsidy rules," Journal of Economic Theory, Elsevier, vol. 37(2), pages 356-365, December.
    8. Cornet, Bernard, 1988. "General equilibrium theory and increasing returns : Presentation," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 103-118, April.
    9. Hardle, Wolfgang & Hildenbrand, Werner & Jerison, Michael, 1991. "Empirical Evidence on the Law of Demand," Econometrica, Econometric Society, vol. 59(6), pages 1525-1549, November.
    10. Gerard Debreu, 1961. "New Concepts and Techniques for Equilibrium Analysis," Cowles Foundation Discussion Papers 129, Cowles Foundation for Research in Economics, Yale University.
    11. Hamano, Tadashi, 1994. "On the existence of equilibria without convexity or free disposal on production technologies," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 565-583, November.
    12. Kamiya, Kazuya, 1988. "On the survival assumption in marginal (cost) pricing," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 261-273, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Acurio Vásconez, Verónica & Giraud, Gaël & Mc Isaac, Florent & Pham, Ngoc-Sang, 2015. "The effects of oil price shocks in a new-Keynesian framework with capital accumulation," Energy Policy, Elsevier, vol. 86(C), pages 844-854.
    2. Gaël Giraud & Céline Rochon, 2007. "Natural rate of unemployment and efficiency: a dynamic analysis with flexible prices and increasing returns," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00155739, HAL.
    3. J. M. Bonnisseau & A. Jamin, 2008. "Equilibria with Increasing Returns: Sufficient Conditions on Bounded Production Allocations," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1033-1068, December.
    4. Hichem Ben-El-Mechaiekh & Philippe Bich & Monique Florenzano, 2009. "General equilibrium and fixed-point theory: a partial survey," PSE-Ecole d'économie de Paris (Postprint) hal-00755998, HAL.
    5. GIRAUD, Gaël, 2000. "An algebraic index theorem for non-smooth economies," LIDAM Discussion Papers CORE 2000016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Salchow, Hans-Jurgen, 2006. "An essay on the state of economic science," Journal of Mathematical Economics, Elsevier, vol. 42(6), pages 653-660, September.
    7. Charalambos Aliprantis & Kim Border & Owen Burkinshaw, 1996. "Market economies with many commodities," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 19(1), pages 113-185, March.
    8. Jean-Marc Bonnisseau, 2000. "The Marginal Pricing Rule in Economies with Infinitely Many Commodities," Econometric Society World Congress 2000 Contributed Papers 0262, Econometric Society.
    9. Fuentes, Matías N., 2011. "Existence of equilibria in economies with externalities and non-convexities in an infinite-dimensional commodity space," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 768-776.
    10. Jean-Marc Bonnisseau & Bernard Cornet, 2006. "Existence of equilibria with a tight marginal," Cahiers de la Maison des Sciences Economiques b06022, Université Panthéon-Sorbonne (Paris 1).
    11. Bonnisseau, Jean-Marc & Medecin, Jean-Philippe, 2001. "Existence of marginal pricing equilibria in economies with externalities and non-convexities," Journal of Mathematical Economics, Elsevier, vol. 36(4), pages 271-294, December.
    12. Bonnisseau Jean-Marc & Jamin Alexandrine, 2011. "The Survival Assumption in Intertemporal Economies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-18, June.
    13. Bonnisseau, J.-M. & Cornet, B., 2008. "Existence of equilibria with a tight marginal pricing rule," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 613-624, July.
    14. Brown, Donald J. & Heller, Walter P. & Starr, Ross M., 1992. "Two-part marginal cost pricing equilibria: Existence and efficiency," Journal of Economic Theory, Elsevier, vol. 57(1), pages 52-72.
    15. Mandel, Antoine, 2008. "An index formula for production economies with externalities," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1385-1397, December.
    16. Murty, Sushama, 2010. "Externalities and fundamental nonconvexities: A reconciliation of approaches to general equilibrium externality modeling and implications for decentralization," Journal of Economic Theory, Elsevier, vol. 145(1), pages 331-353, January.
    17. Gaël Giraud & Cécile Renouard, 2011. "In search of an alternative to shareholder value maximization," Post-Print hal-00609153, HAL.
    18. Guoqiang Tian, 2016. "On the existence of price equilibrium in economies with excess demand functions," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(1), pages 5-16, April.
    19. Alejandro Manelli, 1990. "Core Convergence Without Monotone Preferences or Free Disposal," Discussion Papers 891, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    20. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.

    More about this item

    Keywords

    Free disposal; increasing returns to scale; marginal pricing; non-convex production; Libre disposition; rendements d'échelle croissants; tarification marginale; production non-convex;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00195903. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.