Download This PaperMultiplicity of Dynamic Equilibria and Global Efficiency
15 Pages Posted: 10 Jun 2004
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: Suggested Citation
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