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    188宝金博页面版: Generalized Samuelson conditions and welfare theorems for nonsmooth economies

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    内容提示： ELSEVIER Journal of Public Economics 59 (1996) 137-152 JOURNAL OF PUBLIC ECONOMICS Generalized Samuelson conditions and welfare theorems for nonsmooth economies John P. Conley a, Dimitrios Diamantaras b'* aDepartment of Economics, University of Illinois, Champaign, 1L 61820, USA bDepartment of Economics, Temple University, Philadelphia, PA 19122, USA Received October 1993; revised version received September 1994 Abstract We give intuitive Samuelson conditions for a very general class of economies. Smoothne...

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    ELSEVIER Journal of Public Economics 59 (1996) 137-152 JOURNAL OF PUBLIC ECONOMICS Generalized Samuelson conditions and welfare theorems for nonsmooth economies John P. Conley a, Dimitrios Diamantaras b'* aDepartment of Economics, University of Illinois, Champaign, 1L 61820, USA bDepartment of Economics, Temple University, Philadelphia, PA 19122, USA Received October 1993; revised version received September 1994 Abstract We give intuitive Samuelson conditions for a very general class of economies. Smoothness and monotonicity are not required. We provide necessary and sufficient conditions for all Pareto-efficient allocations, including those on the boundary. We prove that if all agents have a cheaper point, the supporting prices fully decentralize the allocation. We also show first and second welfare theorems as corollaries to the characterization of efficient allocations. Keywords: Public goods; Samuelson conditions; Efficient allocations; Welfare theorems; Nonsmooth economies JEL classification: H41; D61 I. Introduction Samuelson (1954, 1955) provided the first modern study of economies with public goods. One of his main results was to provide a set of calculus- based conditions for Pareto efficiency. These 'Samuelson conditions' have since become one of the fundamental tools for understanding public goods economies. However, his work has several important limitations. In par- ticular, he did not deal with the issue of corner allocations, in which at least one good is not consumed at all by at least one agent. Given that this is * Corresponding author. 0047-2727/96/$15.00 (~ 1996 Elsevier Science S.A. All rights reserved SSDI 0047-2727(94)01492-2

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