|This centre is a member of The LSE Research Laboratory [RLAB]: CASE | CVER | CEP | SERC | STICERD||Cookies?|
Paper No' TE/1991/232:
Save Reference as: BibTeX File | EndNote Import File
Is hard copy/paper copy available? NO - Paper Copy Out Of Print.
This Paper is published under the following series: Theoretical Economics
Share this page: Google Bookmarks | Facebook | Twitter
Abstract:Bewley's programme of excluding price singularities in equilibrium solutions for commodity spaces of bounded functions is reconsidered. From two recent examples in which singularities are indispensable, viz., marginal cost pricing in continuous time and an overlapping generations model, it is concluded that, although L?-model makes sense only when prices are represented by densities, price singularities can be incorporated by restricting the commodity space to be subspace of L?. Bewley's approach is rejiged for use in continuous time by weakening his Exclusion Assumption to obtain a price density result with extended applicability; also, the Mackey topology is replaced by the topology of convergence measure, which is simpler and more closely matches the economic properties modelled.
Copyright © RLAB & LSE 2003 - 2016 | LSE, Houghton Street, London WC2A 2AE | Contact: RLAB | Site updated 26 June 2016