Journal Article Optimum Growth in an Aggregative Model of Capital Accumulation Get access David Cass David Cass Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 32, Issue 3, July 1965, Pages 233–240, https://doi.org/10.2307/2295827 Published: 01 July 1965

We investigate the structure of competitive equilibria in an exchange economy parametrized by (i) endowments and (ii) restrictions on market participation. For arbitrary regular endowments, if few consumers are restricted, there are no sunspot equilibria. If endowments are allowed to vary, while restrictions on market participation are fixed, there is a generic set of preferences such that sunspot equilibria exist for a non-empty subset of endowments. Our analysis extends to the general case of an arbitrary number of restricted consumers the results of Cass and Shell for the polar cases in which either (i) no consumers are restricted or (ii) all consumers are restricted.