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| Author: | Coleman II, W. J. |
| Title: | Uniqueness of an Equilibrium in Infinite-Horizon Economies Subject to Taxes and Externalities |
| Journal: | Journal of Economic Theory
2000 : NOV, VOL. 95:1, p. 71-78 |
| Index terms: | EQUILIBRIUM ANALYSIS EQUILIBRIUM THEORY PRODUCTION FUNCTIONS EXTERNALITIES |
| Language: | eng |
| Abstract: | This paper verifies the uniqueness of an equilibrium for a class of stochastic infinite-horizon economies with capital that are subject to distortionary taxes or externalities. This paper relies on a theorem that a monotone, concave operator, subject to some other minor restrictions has at most one strictly-positive fixed point. The proof develops the property of concavity for a nonlinear monotone operator whose fixed points correspond to equilibria. As the underlying monotone operator has been useful for establishing the existence of an equilibrium, and for computing an equilibrium, this approach also brings under one roof the study of existence, and approximation of an equilibrium in distorted economies. |
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