ENDOGENOUS ENDOWMENTS AND EQUILIBRIUM STARVATION IN A WALRASIAN ECONOMY

This gaper deals with atomless exchange economies which do not fulfil the usual autarky assumption, meaning the endowments may lie outside t he consumption set. I establish the existence of a Walras equilibrium, provided the economy is 'heterogenous' (in some precise sense). Furth ermore, the First Welfare Theorem is generalized to arbitrary, not nec essarily autarkic, economies. (C) 1998 Elsevier Science S.A. All right s reserved.