General Equilibrium, Growth, and Trade

Essays in Honor of Lionel McKenzie

1st Edition - January 28, 1979
Editors: Jerry R. Green, Josè Alexandre Scheinkman
Language: English
eBook ISBN:
9 7 8 - 1 - 4 8 3 2 - 7 1 4 5 - 3

General Equilibrium, Growth, and Trade: Essays in Honor of Lionel McKenzie provides information pertinent to the three main areas of Professor McKenzie's scientific research,… Read more

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General Equilibrium, Growth, and Trade: Essays in Honor of Lionel McKenzie provides information pertinent to the three main areas of Professor McKenzie's scientific research, namely, international trade, economic growth, and general equilibrium theory. This book highlights the main aspects of McKenzie's work. Organized into three parts encompassing 21 chapters, this book begins with an overview of the regularizing effects of aggregation over nonregular microrelations. This text then examines the theory of a multiperiod monopolist incurring nonseparable labor adjustment costs, which is developed when investment is irreversible. Other chapters consider the behavior of a price-maker in a competitive market as a preliminary step to a more complete analysis of pure competition. This book discusses as well the effects of uncertainty on optimal decisions, which constitutes an increasingly essential area of economic research. The final chapter deals with the general equilibrium macroeconomic model. This book is a valuable resource for economists and economic theorists.

List of Contributors

Preface

Introduction

References

Part 1 General Equilibrium

Continuously Dispersed Preferences, Regular Preference-Endowment Distribution, and Mean Demand Function

1. Introduction

2. Model and the Statement of Results

3. Proofs

References

Employment Policies for the Multiperiod Monopolist-Monopsonist with Implications for Macroeconomic Control

I. Introduction

II. The Model of the Multiperiod Monopolist- Monopsonist

III. Optimal Input Policies

IV. The Sensitivity of Optimal Policies to Price Parameters

V. Conclusion: Disequilibrium Comparative Statics and Macroeconomic Policy

References

A Stable Price Adjustment Process

References

Price Adjustment in a Competitive Market and the Securities Exchange Specialist

I. Introduction

II. The Trading Process

III. The Specialist's Activities and Security Prices

IV. Price Variability

V. A Digression on the Bid-Ask Spread

VI. Conclusions

Appendix. Verification of Optimal Behavior

References

An Infinite Horizon Model with Money

The Individual Agents

A Characterization of Maximal Sequences

Equilibrium

The Existence of Equilibrium and Equivalent

Government Policies

Conclusion

References

Consumption under Uncertainty

Appendix

References

Balanced Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points for Two or More Agents

1. The Nash-Walras Equivalence for Two or More Agents

2. The Nash-Lindahl Equivalence for Two or More Agents

References

Stochastic Stability of Market Adjustment in Disequilibrium

1. Introduction

2. The Stochastic Stability Theorem

References

Identifiability of the von Neumann-Morgenstern Utility Function from Asset Demands

References

Part 2 Growth

An Integration of Stochastic Growth Theory and the Theory of Finance, Part I: The Growth Model

1. Introduction

2. The Optimal Growth Model

Appendix. Section 2

References

Fair Division of a Random Harvest: The Finite Case

1. Introduction

2. Preliminary Simplifications

3. The Kuhn- Tucker Theorem

4. Proof of the Main Theorem

References

Characterizing Inefficiency of Infinite-Horizon Programs in Nonsmooth Technologies

1. Introduction

2. The Model

3. Some General Characterization Results

4. Complete Characterizations in Smooth Technologies

5. Partial Characterizations in Golden-Rule Technologies

6. A Special Case of Flats and Kinks

References

Notes on Comparative Dynamics

1. Introduction

2. The Model

3. A General Result

4. A Result Involving Diagonal Dominance

5. A Further Remark

References

Efficient Intertemporal Allocation, Consumption-Value Maximization, and Capital-Value Transversality: A Unified View

I. Introduction and Summary

II. Fundamental Support Properties

III. General Growth Model

IV. Characterization of Efficiency

V. Efficiency and Consumption-Value Maximization

VI. Optimality (or Consumption-Value Maximization) and Capital-Value Transversality

VII. Complications from Primary Factors

VIII. Alternative Notions of Optimality

Appendix A

Appendix Β

References

Part 3 Trade

The Theory and Application of Trade Utility Functions

1. Introduction

2. Definitions and Preliminary Results

3. The Trade Utility Function

4. The Trade Demand Correspondence

5. The Case of a Differentiable Trade Demand Function

6. Treatment in Terms of Inverse Demand Functions

References

A Model of Trade and Unemployment

I. Introduction

II. Preliminary Models

III. Production Relationships

IV. Real Expenditure and the Demand for Nontradables

V. A Fall in the Wage Rate

VI. Currency Devaluation

VII. Long-Run Adjustments

VIII. Concluding Remarks

References

Two Propositions on the Global Univalence of Systems of Cost Function

I. Introduction and Statement of Results

II. Proofs

References

On The Concepts of Factor Intensities and the Relation Between Commodity Prices and Factor Rewards

1. Introduction

2. General Formulation

3. The Concepts of Factor Intensities

4. Economic Interpretation of Factor Intensity Conditions

References

Factor Price Equalization with More Industries Than Factors

1. Introduction

2. Definitions

3. Three Theorems

4. Examples and Conclusions

References

The General Equilibrium Framework of Economic Analysis: Stocks and Flows—with Special Application to Macroeconomic Models

I. Stocks and Flows

II. The Framework of Macroequilibrium

III. A Historical Note

References