Existence of competitive equilibrium in economies with multi-member households

Abstract

This paper focuses on the existence of a competitive equilibrium in the general equilibrium model with multi-member households introduced by Haller (2000). Two main results are obtained: the first is based on the assumption of ``budget exhaustion,'' which is also used in the existence theorem by Gersbach and Haller (1999). The second is based on the assumption that every household has at least one member whose preference is nonsatiated with respect to feasible household consumption, and this is applicable to the case in which budget exhaustion does not hold.Multi-member households, Competitive equilibrium, nonsatiation