A SUFFICIENCY RESULT FOR CONSTRAINED ECONOMIES

Authors
YATES AJ
Citation
Aj. Yates, A SUFFICIENCY RESULT FOR CONSTRAINED ECONOMIES, Journal of mathematical economics, 27(4), 1997, pp. 411-423
Citations number
12
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences",Mathematics
Journal title
Journal of mathematical economics → ACNP
ISSN journal
03044068
Volume
27
Issue
4
Year of publication
1997
Pages
411 - 423
Database
ISI
SICI code
0304-4068(1997)27:4<411:ASRFCE>2.0.ZU;2-#
Abstract
This paper presents a general sufficiency result for constrained econo mies. The result shows that, when an equilibrium allocation satisfies the first-order necessary conditions for hybrid efficiency (a new type of constrained efficiency), there exists a marginal cost pricing equi librium in an associated economy. If this equilibrium is Pareto effici ent in the associated economy, then the original equilibrium allocatio n is hybrid efficient. Hence, the necessary conditions are also suffic ient.