Skip navigation
User training | Reference and search service

Library catalog

Retrievo
EDS
b-on
More
resources
Content aggregators
Please use this identifier to cite or link to this item:

acessibilidade

http://hdl.handle.net/10071/3210
acessibilidade
Title: A decentralized approach to general equilibrium analysis
Authors: Leão, E. R.
Issue Date: Jul-2008
Publisher: DINÂMIA
Series/Report no.: DINÂMIA'CET-Working Papers
Abstract: In this paper we develop a decentralized zero growth version of the model in King, Plosser and Rebelo (1988). By zero growth model we mean a model where physical output is constant in the steady-state. Note that, for the purposes of simulation, King, Plosser and Rebelo also transform their exogenous growth model into a model which is essentially a zero growth model. Our use of a decentralized version can also be explained. First, with a decentralized approach the assumptions we are using and their role become clearer. For example, with a Constant Returns to Scale production function the number of households and the number of firms is not important in terms of describing the equilibrium behaviour of the economy. But we may want to try other technologies. Second, the decentralized approach is more general. It can be used even when the assumptions of the second welfare theorem do not hold. Imperfect competition and distorting taxation are examples of realities which cannot be tackled using the second welfare theorem. In the model we construct, there are only two types of economic agents: households and firms. It is also important to note from the outset that we only have real variables in the model.
Description: DINÂMIA, Julho de 2008.
Peer reviewed: Sim
URI: http://hdl.handle.net/10071/3210
DOI: 10.7749/dinamiacet-iul.wp.2008.66
Appears in Collections:DINÂMIA'CET-WP - Working papers com arbitragem científica

Files in This Item:
acessibilidade
File Description SizeFormat 
DINAMIA_WP_2008-66.pdf574.5 kBAdobe PDFView/Open


FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpace
Formato BibTex MendeleyEndnote Currículo DeGóis 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.