General Equilibrium, Growth, and Trade - 1st Edition - ISBN: 9780122987502, 9781483271453

General Equilibrium, Growth, and Trade

1st Edition

Essays in Honor of Lionel McKenzie

Editors: Jerry R. Green Josè Alexandre Scheinkman
eBook ISBN: 9781483271453
Imprint: Academic Press
Published Date: 28th January 1979
Page Count: 422
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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.

Table of Contents

List of Contributors




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


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


A Stable Price Adjustment Process


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


An Infinite Horizon Model with Money

The Individual Agents

A Characterization of Maximal Sequences


The Existence of Equilibrium and Equivalent

Government Policies



Consumption under Uncertainty



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


Stochastic Stability of Market Adjustment in Disequilibrium

1. Introduction

2. The Stochastic Stability Theorem


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


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


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


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


Notes on Comparative Dynamics

1. Introduction

2. The Model

3. A General Result

4. A Result Involving Diagonal Dominance

5. A Further Remark


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


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


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


Two Propositions on the Global Univalence of Systems of Cost Function

I. Introduction and Statement of Results

II. Proofs


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


Factor Price Equalization with More Industries Than Factors

1. Introduction

2. Definitions

3. Three Theorems

4. Examples and Conclusions


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



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© Academic Press 1979
Academic Press
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About the Editor

Jerry R. Green

Josè Alexandre Scheinkman

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