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Multiplicity of Dynamic Equilibria and Global Efficiency

Author

Listed:
  • Giancarlo Marini

    (University of Rome II - Faculty of Economics)

  • Pietro Senesi

    (University of Rome II - Faculty of Economics)

Abstract
Within a one-sector, infinite-horizon representative agent model with technological externalities and a convex-concave production function, this paper derives a capital subsidy policy that simultaneously eliminates the wedge between private and social marginal products of capital, and achieves a globally efficient allocation.

Suggested Citation

  • Giancarlo Marini & Pietro Senesi, 2004. "Multiplicity of Dynamic Equilibria and Global Efficiency," CEIS Research Paper 57, Tor Vergata University, CEIS.
    • Handle: RePEc:rtv:ceisrp:57
    as

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    File URL: https://ceistorvergata.it/RePEc/rpaper/No-57-Marini-Senesi.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    nonconvexities; technological externalities; dynamic equilibrium allocations;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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