Existence of a competitive equilibrium in a one sector growth model with heterogeneous agents and irreversible investment

Cuong Le Van (1) , Yiannis Vailakis (2)

1 CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique
2 UCL IRES - Institut de recherches économiques et sociales

Wr prove existence of a competitive equilibrium in a version of a Ramsey (one sector) model in which agents are heterogeneous and gross investment is constrained to be non negative. We do so by converting the infinite-dimensional fixed point problem tated in terms of prices and commodities into a finite-dimensional Negishi problem involving individual weights in a social value function. This method allows us to obtain detailed results concerning the properties of competitive eqilibria. Because of the simplicity of techniques utilized our approach is amenable to be adapted by practioners in analogous problems often studied in macroeconomics

Mots clés: One sector growth model; Pareto-optimum; Competitive equilibrium; Heterogeneous agents; Non negative gross investment

Domaines: Economies et finances; Optimisation et contrôle [math.OC]

Cuong Le Van, Yiannis Vailakis. Existence of a competitive equilibrium in a one sector growth model with heterogeneous agents and irreversible investment. Economic Theory, 2003, 22 (4), pp.743-771. ⟨10.1007/s00199-002-0355-y⟩. ⟨halshs-00119095⟩