Application of functional analysis to models of efficient allocation of economic resources

Chichilnisky, Graciela and Kalman, P. J. (1979): Application of functional analysis to models of efficient allocation of economic resources. Published in: Journal of Optimization Theory and Applications , Vol. 30, No. No. 1 (January 1980): pp. 19-32.

Abstract

The present paper studies existence and characterization of efficient paths in infinite-horizon economic growth models: the method used is based on techniques of nonlinear functional analysis on Hilbert spaces developed earlier by Chichilnisky. Necessary and sufficient conditions are given for the existence of positive competitive price systems in which the efficient programs maximize present value and intertemporal profit. Approximation of these competitive price systems by strictly positive ones with similar properties is studied. A complete characterization is also given f a class of welfare functions (nonlinear operators defined on consumption paths) for continuity in a weighted L2-norm.

• Item Type: MPRA Paper
• Language: English
• Keywords: Hilbert spaces; existence theorems; functional analysis; applied mathematics
• Subjects: D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium

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