1. A General Equilibrium Model in Which Consumption Takes Time
- Author
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Ngoc-Sang Pham, Binh Tran-Nam, Cuong Le-Van, Thi-Do-Hanh Nguyen, IPAG Business School, Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School, School of Business and Management, RMIT University Vietnam (RMIT), Tran-Nam Binh, Tawada Makoto, and Okawa Masayuki
- Subjects
Consumption (economics) ,General equilibrium theory ,Comparative statics ,05 social sciences ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Constraint (information theory) ,General equilibrium ,Quasi-equilibrium ,8. Economic growth ,0502 economics and business ,Economics ,Time constraint ,Dividend ,Dividend approach ,Uniqueness ,050207 economics ,Mathematical economics ,Heterogeneous households ,Quasistatic process ,050205 econometrics - Abstract
International audience; This chapter examines a general equilibrium competitive economy with many heterogeneous agents. The key feature of the model is that consumption itself takes time so that a typical household is subject to a financial constraint as well as a time constraint. Using the dividend approach proposed by Le-Van and Nguyen (J Math Econ 43:135−152, 2007), it is shown that the economy possesses at least one autarkic Walrasian equilibrium. Sufficient conditions for the uniqueness of the autarkic equilibrium are then derived. Finally, a specific example is provided to illustrate the working of the model, including the derivation of the equilibrium labour allocation and some comparative static results.
- Published
- 2018
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