Existence of General Equilibria in Infinite Horizon Economies with Exhaustible Resources (the Continuous Time Case)

摘要

The existence problem of general equilibria in continuous-time economies with natural exhaustible resources and an infinite horizon cannot be solved by the classical Arrow/Debreu approach nor by the results from the more recent theory on infinite dimensional commodity spaces, without imposing conditions which, from a resource economic point of view, are hard to accept. An alternative two-step method is proposed, where, in the first step, existence of an equilibrium in the (artificially) truncated economy is established along the lines set out by Negishi, and, in the second step, the limiting allocation is shown to be an equilibrium for the infinite horizon economy.