Competitive equilibrium with indivisibilities

Article Abstract:

The equivalence of the core and the competitive equilibrium does not hold for an economy characterized by a finite number of agents dealing in a finite number of indivisible commodities when the coalitional form game is generated. This is due to the non-coincidence of the core with the set of of competitive payoffs and and the lack of evidence for balancedness in the generated competitive equilibrium in the economy.

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Indeterminacy and stabilization policy

Article Abstract:

An income tax schedule was shown to be an effective instrument in averting sunspot fluctuations in an economy. The economy is characterized as a one-sector real business cycle model, and can be made to generate significant gains by exploiting fluctuations in the otherwise indeterminate steady state. The shock is provided by the income tax schedule, whose progressivity feature effects a saddle path stability.

Income tax

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