General Equilibrium, Growth, and Trade II - 1st Edition - ISBN: 9780120846559, 9781483216386

General Equilibrium, Growth, and Trade II

1st Edition

The Legacy of Lionel McKenzie

Editors: Robert Becker Michele Boldrin Ronald Jones
eBook ISBN: 9781483216386
Imprint: Academic Press
Published Date: 3rd August 1993
Page Count: 630
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General Equilibrium, Growth, and Trade, Volume II: The Legacy of Lionel McKenzie presents the impact of Lionel McKenzie's contributions on modern economics. This book discusses McKenzie's researches that are relevant in applied economic fields, including general equilibrium, optimal growth, and international trade.

Organized into three parts encompassing 24 chapters, this volume begins with an overview of the existence of competitive equilibrium in an economy with a finite number of agents and commodities. This text then presents two analyses that are basically responses to criticism of the development of real indeterminacy. Other chapters consider McKenzie's assumption of irreducibility, which plays a significant role in showing how compensated equilibria will be uncompensated equilibria because agents have cheaper net trade vectors in their feasible sets. This book discusses as well some properties of competitive equilibria for dynamic exchange economies with an infinite horizon and incomplete financial markets.

This book is a valuable resource for economists and economic theorists.

Table of Contents


Part I General Equilibrium

Lionel Mckenzie on the Existence of Competitive Equilibrium

1. Introduction

2. Existence in Graham's Model: 1954

3. Existence with Externalities: A Year Later

4. Interiority, Irreducibility, and Irreversibility: Four Years Later

5. Classical Theorem in Its Fully Developed Form: 22 Years Later

6. An Overview


Mckenzie and the Slutsky Coefficients


Real Indeterminacy from Imperfect Financial Markets: Two Addenda

1. Introduction

2. The Setting

3. Outside Money

4. Small Imperfections


Irreducibility, Resource Relatedness, and Survival in Equilibrium with Individual Nonconvexities

1. Introduction

2. Preliminaries

3. Cheaper Points for Individuals

4. Nonoligarchic Allocations

5. Interdependent Agents and Irreducible Economies

6. Continuum Economies

7. Proofs of Propositions

8. Concluding Remarks


Incomplete Financial Markets with an Infinite Horizon

1. Introduction

2. Definitions

3. Bankruptcy Condition and Continuity of the Budget Set

4. Price Space

5. Indeterminacy

6. Conclusions


Commodity Pair Desirability and the Core Equivalence Theorem

1. Introduction

2. Preliminaries

3. The Model and a Preliminary Theorem

4. Extremely Desirable Commodities and Commodity Pair Desirability

5. Core-Walras Equivalence in Banach Lattices Whose Positive Core Has an Empty Interior

6. Concluding Remarks


Lump-Sum Taxation: The Static Economy

1. Introduction

2. Preliminaries

3. Bonafide Fiscal Policies

4. The Set of Equilibrium Money Prices

5. Extensions


Equilibrium, Stability, and Price Adjustments in Competitive Markets

1. Introduction

2. Examples of Competitive Economies

3. Price Choices with an Optimizing Price Maker

4. Scarfs Economy: Single-Period Horizon

5. Scarfs Economy: Multiperiod Horizon

6. Gale's Economy

7. Concluding Comments


Asymptotic Behavior of Asset Markets: Asymptotic Inefficiency

1. Introduction

2. The Model

3. Existence of Securities Market Equilibrium

4. Asymptotics

5. Genericity

6. Unconstrained Consumption

7. Concluding Remarks


Part II Growth

Endogenous Fertility and Growth

1. Introduction

2. The Model and Assumptions

3. Characterization of Fertility Rate Changes

4. The Model with Schooling


A Vintage Capital Model of Investment and Growth: Theory and Evidence

1. Introduction

2. The Model: Description and General Properties

3. Some Technical Results

4. Nonmonotonicity Properties of the Optimal Path

5. The Steady State

6. The Policy Function

7. The Stochastic Model

8. Empirical Results



Thoughts of Volatility Tests of the Intemporal Asset Pricing Model

1. Introduction

2. Definition of Market Efficiency

3. A Quick Review of Tests of Market Efficiency

4. The Model

5. Asset Prices with Insurance

6. Asset Prices without Insurance

7. A Possible Explanation of Volatility


Stationary Markovian Strategies in Dynamic Games

1. Introduction

2. A Dynamic Game Model of Resource Exploitation

3. Cyert-deGroot-Maskin-Tirole Duopoly Games

4. Reaction Function Equilibria

5. Concluding Remarks



Turnpike Properties and Comparative Dynamics of General Capital Accumulation Games

1. Introduction

2. Formulation and Notation

3. Existence and Stability Properties

4. Comparative Statics and Dynamics

5. Conclusions



Experimental Consumption for a General Class of Disturbance Densities

1. Introduction

2. The Model

3. Main Results

4. An Extension

5. Examples


The Firm and the Plant in General Equilibrium Theory

1. Introduction

2. The Firm in General Equilibrium Theory

3. The Plant in General Equilibrium Theory

4. Existence of Competitive Equilibrium


A Note on Boundary Optimal Paths

1. Motivation

2. Our Basic Model

3. Key Assumptions and Their Implications

4. Additional Results

5. Conclusion


Part III International Trade

The Stolper-Samuelson Theorem: Links to Dominant Diagonals

1. The Strong Factor-Intensity Condition

2. A Dominant Diagonal Matrix

3. The Willoughby Theorem

4. The Produced Mobile Factor (PMF) Structure

5. Concluding Remarks


Labor Mobility and Wage Rate Equalization

1. Introduction

2. One Immobile Factor

3. Two Immobile Factors

4. Conclusions


Borrowing Constraints and International Comovements

1. Introduction

2. The Model

3. The Stationary Distribution of Asset Holding

4. Simulations of the Model

5. Conclusion



Multinational Corporations and Absolute Advantage: The Asymmetric Case

1. Introduction

2. The Basic Structure of the Model

3. The World Transformation Curve

4. Concluding Remarks

Appendix: The World Transformation Curves with No MNCs or MNCs of One Type Only


Variable Returns to Scale and Dynamic Adjustments: The Marshall-Lerner Condition Reconsidered

1. Introduction

2. Model

3. Stability of Temporary and Long-Run Equilibrium

4. Output Adjustment and Capital Adjustment Processes

5. Rehabilitation of the Marshallian Approach

6. A Shift in Tastes

7. The Transfer Problem

8. Some Further Discussions

Appendix A

Appendix B


Tariff Protection with Imperfect Competition and Existence of the General Equilibrium Solution with Intraindustry Trade

1. Introduction

2. Model

3. Existence of General Equilibrium Solution with Intraindustry Trade Between Two Countries

4. Tariff and Individual Countries

5. Tariff and World Welfare


International Transfer in Dynamic Economies

1. Introduction

2. Model

3. Comparative Dynamics and Statics: Main Theorems

4. Interpretation of the Theorems

5. Proof of Theorems




Previous Volumes in the Series


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Academic Press
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About the Editor

Robert Becker

Michele Boldrin

Ronald Jones

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