we develop a mainstream reformulation of the original Walras' model of capital accumulation.First,we prove the existence of intertemporal competitive equilibria combining a theorem due to Yannelis and Prabhokar with a lemma due to Geanakoplos.Secondly,we remedy the indeterminacy of savings allocatione of the walrasian model by introducing a storage technology.Finally we show that,for stored capital goods,the equality of rate of return emerges endogenously in equilibrium.
Walras'theory of capital formation. An intertemporal equilibrium reformulation / Impicciatore, Galeazzo; Panaccione, Luca; Francesco, Ruscitti. - In: JOURNAL OF ECONOMICS. - ISSN 0931-8658. - STAMPA. - 106:2(2012), pp. 99-119. [10.1007/s00712-011-0231-y]
Walras'theory of capital formation. An intertemporal equilibrium reformulation
IMPICCIATORE, Galeazzo;Luca Panaccione;
2012
Abstract
we develop a mainstream reformulation of the original Walras' model of capital accumulation.First,we prove the existence of intertemporal competitive equilibria combining a theorem due to Yannelis and Prabhokar with a lemma due to Geanakoplos.Secondly,we remedy the indeterminacy of savings allocatione of the walrasian model by introducing a storage technology.Finally we show that,for stored capital goods,the equality of rate of return emerges endogenously in equilibrium.File | Dimensione | Formato | |
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