Valuation equlibrium revisited

  1. Hammond, Peter
  2. Villar, Antonio
Revista:
Working papers = Documentos de trabajo: Serie AD

Any de publicació: 1998

Número: 24

Tipus: Document de treball

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Resum

This paper extends the notion of valuation equilibrium which applies to market economies involving the choice of a public environment. Unlike some other recent work, it is assumed here that consumers and firms evaluate alternative environments taking market prices as given (hence this notion is closer to that of competitive equilibria). It is shown that valuation equilibria with balanced tax schemas yield eficient allocations and that eficient allocations can be decentralized as valuation equilibria, with tax schemas that may be unbalanced.

Fuente de los datos: Dialnet