Abstract
Stationary equilibria are constructed for a series of nonstochastic production economies in which the decisions of producers, wage earners, shareholders, and savers modulate, via a “production function”, the endowment variables in an additive manner. The efficiency of each model is compared to that of a single agent who produces for personal consumption.
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Most of this work was carried out during the spring of 2004, while Sudderth was visiting the Cowles Foundation at Yale University. The work of Karatzas was supported by the National Science Foundation under grant NSF-DMS-06-01774, and by the Institute for Mathematics and Its Applications (IMA) which made possible a visit to the University of Minnesota during a week in May 2004. The support of these foundations is gratefully acknowledged.
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Karatzas, I., Shubik, M. & Sudderth, W.D. Production, interest, and saving in deterministic economies with additive endowments. Economic Theory 29, 525–548 (2006). https://doi.org/10.1007/s00199-006-0141-3
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DOI: https://doi.org/10.1007/s00199-006-0141-3