Working Paper

General Equilibrium with Multi-Member Households and Production

Hans Gersbach, Hans Haller
CESifo, Munich, 2011

CESifo Working Paper No. 3659

We consider firms and multi-member households operating in a competitive market environment. Households are endowed with resources (commodity bundles) and shares of firm ownership. Household members are characterized by individual preferences, possibly with intra-household consumption externalities. Household decisions adhere to the collective rationality model. Existence of general equilibrium and validity of the first welfare theorem are investigated.

CESifo Category
Industrial Organisation
Keywords: household behavior, general equilibrium, production
JEL Classification: D100, D500, D620, D700