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ECONOMIES WITH PUBLIC PROJECTS: EFFICIENCY AND DECENTRALIZATION *
Author(s) -
Graziano Maria Gabriella
Publication year - 2007
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2007.00453.x
Subject(s) - commodity , decentralization , public good , economics , consumption (sociology) , welfare , production (economics) , set (abstract data type) , mathematical economics , microeconomics , regular polygon , duality (order theory) , relation (database) , finite set , mathematics , market economy , computer science , pure mathematics , social science , geometry , database , sociology , programming language , mathematical analysis
The article deals with the two fundamental theorems of welfare economics for production economies with a finite set of agents, infinitely many private goods, and a set of public projects. The problem of efficiency and decentralization is addressed under the following very general assumptions: (a) the commodity–price duality is endowed with a consistent locally convex topology; (b) the set of public projects is without any mathematical structure. Moreover, any agent is characterized by a nonordered preference relation depending on consumption goods and public projects. Approximate and exact welfare theorems are discussed throughout the article.