A generalization of Kaneko’s ratio equilibrium for economies with private and public goods

Dimitrios Diamantaras, Simon Wilkie

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13 Citations (Scopus)

Abstract

We introduce an extension of Kaneko’s ratio equilibrium to the case of economies with many public and private goods. Specifically, we employ a general production model where public goods may be inputs in the production of public goods. Using the accounting concept of transfer prices, we propose a definition of ratio equilibrium that generalizes Kaneko’s. We prove that, under standard assumptions, ratio equilibria exist and are free-access core allocations and therefore Pareto efficient. Journal of Economic Literature Classification Numbers: D50, H41, D62.

Original languageEnglish
Pages (from-to)499-512
Number of pages14
JournalJournal of Economic Theory
Volume62
Issue number2
DOIs
Publication statusPublished - Apr 1994
Externally publishedYes

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