Existence of an equilibrium in arrowian markets for consumption externalities

• 成果类型: Article
• 署名作者: Bonnisseau, Jean-Marc; del Mercato, Elena L.; Siconolfi, Paolo
• 署名单位: Paris School of Economics
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2023.105638
• 发表日期: 2023
• 关键词: Consumption externalities; Markets for externalities; Existence of an equilibrium; Irreducibility and survival

摘要

We study the existence of quasi-equilibria and equilibria for pure exchange economies with consump-tion externalities and Arrowian markets with personalized Lindahl prices. We provide examples showing first that quasi-equilibria and equilibria of the externality economy fail to exist under assumptions guaran-teeing existence for economies without externalities. We show that the externality economy has identical equilibrium allocations of an appropriately defined constant returns to scale production economy without externalities. We exploit this equivalence to map sufficient conditions for the existence of quasi-equilibria and equilibria of the production economy into sufficient conditions of the pure exchange economy with externalities, thereby unveiling suitable irreducibility conditions and survival conditions.(c) 2023 Elsevier Inc. All rights reserved.