Existence of competitive equilibrium in a single-sector growth model with heterogeneous agents and endogenous leisure

We prove the existence of competitive equilibrium in a single-sector dynamic economy with heterogeneous agents and elastic labor supply. The method of proof relies on exploiting the existence of Lagrange multipliers in infinite dimensional spaces and the link between Pareto-optima and competitive equilibria.Optimal growth model, Lagrange multipliers, single-sector growth model, competitive equilibrium, elastic labor supply.

No-arbitrage condition and existence of equilibrium with dividends

In this paper we first give an elementary proof of existence of equilibrium with dividends in an economy with possibly satiated consumers.We then introduce a no-arbitrage condition and show that it is equivalent to the existence of equilibrium with dividends.equilibrium with dividends, economy with possibly satiated consumers, no-arbitrage condition