Existence of competitive equilibrium in an optimal growth model with heterogeneous agents and endogenous leisure

Journal article: This paper proves the existence of competitive equilibrium in a single-sector dynamic economy with heterogeneous agents, elastic labor supply and complete assets markets. The method of proof relies on some recent results concerning the existence of Lagrange multipliers in in nite dimensional spaces and their representation as a summable sequence and a direct application of the inward boundary fixed point theorem.

Author(s)

Aditya Goenka, Cuong Le Van, Manh-Hung Nguyen

Journal
  • Macroeconomic Dynamics
Date of publication
  • 2011
Keywords JEL
C61 D51 E13 O41
Keywords
  • Elastic labor supply
  • Optimal growth model
  • Lagrange multipliers
  • Competitive equilib- rium
  • Individually Rational Pareto Optimum
  • Elastic labor supply
Pages
  • 33-51
Version
  • 1
Volume
  • 16