An Index Theorem for Nonconvex Production Economies

Elyès Jouini (1)

1 CEREMADE - CEntre de REcherches en MAthématiques de la DEcision

We consider a general equilibrium model in which the production sector may exhibit increasing returns to scale or more general types of nonconvexities. We assume that the firms follow general pricing rules. Under standard assumptions in this model, we establish an index formula, which generalizes similar results on exchange economies and on convex production economies. This formula allows us to deduce an equilibrium existence theorem and a uniqueness condition.

Mots clés: pricing rule; convex production economy

Domaines: Economies et finances

Elyès Jouini. An Index Theorem for Nonconvex Production Economies. Journal of Economic Theory, 1992, pp.176-196. ⟨halshs-00175857⟩