PRIX DE PRODUCTION ET PRIX D'ÉQUILIBRE GÉNÉRAL
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PRODUCTION PRICES AND GENERAL EQUILIBRIUM PRICES
In order to link production prices and general equilibrium theories, we consider an intertemporal discrete time economy with finitely many, infinitely lived consumers, and finitely many, infinitely lived firms. On the production side, our assumptions are those of a Leontief economy.
We obtain two main results : Under standard assumptions, this intertemporal model has an equilibrium such that at each period the rate of maximum profit is uniform among producers. The second result is in the spirit of the Samuelson-Solow theorem. Let us consider prices of production as stationary prices which equalize the rate of maximum profit. Under mild conditions such a price system exists and is unique and the sequence of the undiscounted prices of the equilibrium defined above converges to it.
R.A. Dana, M. Florenzano, C. Le Van, D. Lévy, "Production Prices and General Equilibrium Prices: a Long-Run Property of a Leontief Economy", 1989, Journal of Mathematical Economics, Vol. 18(3), pp. 263-280.