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A General Equilibrium Model in Which Consumption Takes Time

  • Cuong Le-Van
  • Thi-Do-Hanh Nguyen
  • Ngoc-Sang Pham
  • Binh Tran-NamEmail author
Chapter
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 26)

Abstract

This chapter examines a general equilibrium competitive economy with many heterogeneous agents. The key feature of the model is that consumption itself takes time so that a typical household is subject to a financial constraint as well as a time constraint. Using the dividend approach proposed by Le-Van and Nguyen (J Math Econ 43:135−152, 2007), it is shown that the economy possesses at least one autarkic Walrasian equilibrium. Sufficient conditions for the uniqueness of the autarkic equilibrium are then derived. Finally, a specific example is provided to illustrate the working of the model, including the derivation of the equilibrium labour allocation and some comparative static results.

Keywords

General equilibrium Heterogeneous households Quasi-equilibrium Dividend approach 

Notes

Acknowledgement

The book chapter is a substantially revised version of a conference paper by the same group of authors presented at the Ninth Vietnam Economist Annual Meeting (VEAM), University of Danang, Vietnam, August 11–12, 2016. It also incorporates materials derived from a working paper by Tran-Nam and Pham (2014).

References

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Cuong Le-Van
    • 1
  • Thi-Do-Hanh Nguyen
    • 2
  • Ngoc-Sang Pham
    • 3
  • Binh Tran-Nam
    • 4
    • 5
    Email author
  1. 1.IPAG Business SchoolParis School of Economics and Centre National de la Recherche ScientifiqueParisFrance
  2. 2.Center d’Economie de la SorbonneUniversity of Paris I Panthon-SorbonneParisFrance
  3. 3.Montpellier Business SchoolMontpellier Research in ManagementMontpellierFrance
  4. 4.School of Taxation and Business LawThe University of New South Wales SydneyKensingtonAustralia
  5. 5.School of Business and ManagementRMIT University VietnamHo Chi Minh CityVietnam

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