Authors
Edward C. Prescott
Senior Monetary Advisor (former)
José-Víctor Ríos-Rull
University of Pennsylvania, CAERP, CEPR, NBER, and UCL
Classical Competitive Analysis in a Growth Economy with Search
Abstract
Arrow-Debreu competitive equilibrium analysis is extended to environments with information sets differing in space as well as in time and with people moving between locations. Equilibrium is shown to exist and to be optimal and the equilibrium price system is characterized. Such environments include many of those studied in the equilibrium search literature.
Published as "Classical Competitive Analysis of Economies with Islands" in _Journal of Economic Theory_ (Vol. 57, No. 1, June 1992, pp. 73-98), https://doi.org/10.1016/S0022-0531(05)80041-9.