Intermediation, Bubbles, and Pareto Efficiency in Economies with Production

dc.contributor.author Pingle, Mark
dc.contributor.author Tesfatsion, Leigh
dc.contributor.author Tesfatsion, Leigh
dc.contributor.department Economics
dc.date 2018-02-16T04:23:11.000
dc.date.accessioned 2020-06-30T02:04:21Z
dc.date.available 2020-06-30T02:04:21Z
dc.date.embargo 2015-04-13
dc.date.issued 1991-04-01
dc.description.abstract <p>In a recent study, Tirole (1985) extends Diamond's (1965, pp. 1130-1135) well-known overlapping generations model of a private production economy by permitting consumption loans. That is, in addition to financing the capital investment of firms, the savings of one generation can be used to finance the consumption of agents in other generations whose consumption demands are in excess of their endowments. Tirole then shows that the re sulting production-consumption loan economy fails to satisfy the First Welfare Theorem. Specifically, as reviewed in Section 2, below, two stationary competitive equilibria exist for this economy: a Pareto inefficient equilibrium e with no consumption loans; and a Pareto efficient "golden-rule" equihbrium e" in which consumption loans are made...</p>
dc.identifier archive/lib.dr.iastate.edu/econ_las_economicreports/31/
dc.identifier.articleid 1022
dc.identifier.contextkey 6977465
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_economicreports/31
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21247
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_economicreports/31/EconReportSeries_24.pdf|||Fri Jan 14 23:30:16 UTC 2022
dc.subject.disciplines Business and Corporate Communications
dc.subject.disciplines Growth and Development
dc.subject.disciplines Industrial Organization
dc.subject.disciplines Models and Methods
dc.subject.disciplines Public Economics
dc.title Intermediation, Bubbles, and Pareto Efficiency in Economies with Production
dc.type article
dc.type.genre report
dspace.entity.type Publication
relation.isAuthorOfPublication 1b45fd18-54a5-46e7-a853-62262cd64b39
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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