Abstract
The conditions of static general equilibrium correspond to the usual Kuhn-Tucker optimality conditions, augmented by “budget-balances” for each of the individual market participants. If this formulation could be extended into the time dimension, the result would be a set of analytical tools of great value in the study of public-policy problems such as taxation, savings and capital-funding, international balances of payments, liquidity and inflation, and the funding of retirement programs. A three-pronged development program in economic theory, mathematical formulations, and computational algorithms is proposed.
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Drews, W.P. (1980). The Need for Dynamic Extensions of General-Equilibrium Methods. In: Fiacco, A.V., Kortanek, K.O. (eds) Extremal Methods and Systems Analysis. Lecture Notes in Economics and Mathematical Systems, vol 174. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46414-0_4
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DOI: https://doi.org/10.1007/978-3-642-46414-0_4
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