Multiplicity of Dynamic Equilibria and Global Efficiency

15 Pages Posted: 10 Jun 2004

See all articles by Giancarlo Marini

Giancarlo Marini

University of Rome Tor Vergata - Faculty of Economics

Pietro Senesi

University of Rome Tor Vergata - Faculty of Economics

Date Written: May 2004

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.

Keywords: nonconvexities, technological externalities, dynamic equilibrium allocations

JEL Classification: C61, D62, H21

Suggested Citation

Marini, Giancarlo and Senesi, Pietro, Multiplicity of Dynamic Equilibria and Global Efficiency (May 2004). Available at SSRN: https://ssrn.com/abstract=556249 or http://dx.doi.org/10.2139/ssrn.556249

Giancarlo Marini (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, 00100
Italy

Pietro Senesi

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
I-00133 Rome
Italy
+39-06-72595701 (Phone)
+39-06-2020500 (Fax)