Existence and regularity of equilibria in a general equilibrium model with private provision of a public good (Q2387410): Difference between revisions

The paper is devoted to the study of equilibrium in a general equilibrium model of a completely decentralized pure public good economy. The main assumptions are the following: several private goods are presented, and a nonlinear production technology is presupposed. A proof of existence is given by using simple homotopy argument. It is based mainly in linking the true model with a fictious one where the public good is considered a a private. It is shown that for any vector of utility and transformation functions and ownership shares, in an open and full measure subset of endowments, there exists a finite number of equilibria and equilibrium variables depend locally smoothly on the exogenous variables.