Knowledge that Transforms

David Levhari, Jacob Paroush, Bezalel Peleg; Efficiency Analysis for Multivariate Distributions1, The Review of Economic Studies, Volume 42, Issue 1, 1 Jan

In a Walrasian world, prices vary so as to balance supply and demand for each good. Arrow and Debreu proved that under some conditions there exists a set of prices which make the agents' plans compatible. In such a framework, there is really no logical need to require that a particular good plays a special role in trade. We shall prove that such a need arises if we try to set up a concept of equilibrium when the prices are not necessarily Walrasian, and for which there is only one market for each good, that is one equation that says that there is equality between resources and uses for each good. The existence of a non-Walrasian equilibrium requires that there be a good, called money, which has to appear in each transaction or which simply has to be the measuring rod of the profitability of each transaction. We assume a pure exchange economy. There are m consumers (i= 1, ..., m). There are r goods (h = 1, ..., r). Let R'+ be the consumption set of consumer i (H.1). wi his positive initial allocation (H.2). Ui his strictly concave, continuously differentiable, and monotone utility function3 (H.3). We assume that the price vectorp (strictly positive) is given. We prescribe the following condition on an allocation:

Journal Article An Asymptotic Theory of Growth Under Uncertainty Get access Robert C. Merton Robert C. Merton Massachusetts Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 3, July 1975, Pages 375–393, https://doi.org/10.2307/2296851 Published: 01 July 1975

Journal Article Aggregation, Income Distribution and Consumer Demand Get access John Muellbauer John Muellbauer Birkbeck College Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 4, October 1975, Pages 525–543, https://doi.org/10.2307/2296792 Published: 01 October 1975

K-equilibrium concept 3/ The existence of a K-equilibrium V -EFFICIENCY PROPERTIES OF K-EQUILIBRIUM 1/ The criterion 2/ Properties of a K-equilibrium 3/ Inefficiency and multiplier effects 4/ The cause of inefficiency VI -AM EXA/vlPLE 1/ The economy 2/ Computation of equilibrium transactions

B. Curtis Eaton, Richard G. Lipsey; The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition12, The Rev

Journal Article The Political Business Cycle Get access William D. Nordhaus William D. Nordhaus Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 2, April 1975, Pages 169–190, https://doi.org/10.2307/2296528 Published: 01 April 1975