Summary
In a stationary state, ineffciency is established if some marginal perturbation leads to a positive surplus for all commodities. We consider the case when, though the original perturbation itself results in positive and negative changes, an adequately chosen combination of such perturbations is conclusive. A characterization in terms of the positive roots of a polynomial is obtained.
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References
Bidard C. (1999), Fixed Capital and Internal Rate of Return, Journal of Mathematical Economics, 31, 523–41.
Cass, D. (1972), On Capital Overaccumulation in the Aggregative Neoclassical Model of Economic Growth: A Complete Characterization, Journal of Economic Theory, 4, 200–23.
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© 2005 Springer-Verlag Berlin Heidelberg
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Bidard, C. (2005). Revealed Intertemporal Ineffciency. In: Citanna, A., Donaldson, J., Polemarchakis, H., Siconolfi, P., Spear, S.E. (eds) Essays in Dynamic General Equilibrium Theory. Studies in Economic Theory, vol 20. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-27192-9_2
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DOI: https://doi.org/10.1007/3-540-27192-9_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-22267-5
Online ISBN: 978-3-540-27192-5
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