The role of money in supporting the pareto optimality of competitive equilibrium in consumption-loan type models

摘要: Perhaps the single most enduring theme in economics is that of social desirability competitive mechanism. In its modern form, this occurs as two basic theorems welfare (see, particular, Arrow). Our central concern paper with validity first these theorems—that every equilibrium yields a Pareto optimal allocation—in idealized yet plausible models intertemporal allocation market economy.