A General Equilibrium Model in Which Consumption Takes Time
Book section: 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.
Author(s)
Cuong Le-Van, Thi-Do-Hanh Nguyen, Ngoc-Sang Pham, Binh Tran-Nam
Publisher(s)
- Springer, Singapore
Scientific editor(s)
- Tran-Nam Binh
- Tawada Makoto
- Okawa Masayuki
Title of the work
- Recent Developments in Normative Trade Theory and Welfare Economics. New Frontiers in Regional Science: Asian Perspectives
Date of publication
- 2018
Keywords
- General equilibrium
- Heterogeneous households
- Quasi-equilibrium
- Dividend approach
Pages
- 97-124
URL of the HAL notice
Version
- 1
Volume
- 26