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Social and Behavioral Sciences Commons

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1991

Cowles Foundation Discussion Papers

Exchange economy

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

An ‘Average’ Lyapunov Convexity Theorem And Some Core Equivalence Results, Lin Zhou May 1991

An ‘Average’ Lyapunov Convexity Theorem And Some Core Equivalence Results, Lin Zhou

Cowles Foundation Discussion Papers

I prove an “average” version of the Lyapunov convexity theorem and apply it to establish some core equivalence results for an atomless economy.


Strictly Fair Allocations In Large Exchange Economies, Lin Zhou Mar 1991

Strictly Fair Allocations In Large Exchange Economies, Lin Zhou

Cowles Foundation Discussion Papers

In this paper we introduce the concept of a strictly fair allocation and investigate the set of strictly fair allocations in large exchange economies. We prove that when agents’ utility functions are differentiable, the set of strictly fair allocations coincides with the set of equal-income Walrasian equilibria. This is shown using both the “limit theorem” approach the “limit economy” approach. We also extend the analysis to economies that have both atoms and an atomless sector. These results substantially improve upon the existing characterizations of equal-income Walrasian equilibria in terms of both economic efficiency and economic equity.