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Core equivalence for residential land use models
Author(s) -
LaFountain Courtney
Publication year - 2008
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2008.00089.x
Subject(s) - equivalence (formal languages) , core (optical fiber) , economics , consumption (sociology) , monotonic function , microeconomics , mathematical economics , boundary (topology) , bundle , set (abstract data type) , econometrics , mathematics , computer science , pure mathematics , mathematical analysis , materials science , sociology , telecommunications , social science , composite material , programming language
I demonstrate that in the monocentric city model, an allocation is in the core if and only if it is an equilibrium allocation, as long as households are endowed with strictly positive quantities of a composite consumption good, enjoy any net trade bundle at least as much as they enjoy one on the boundary of their choice set, have monotonic preferences, have preferences and endowments that are not too different, and as long as there is land at every location. I also show that equilibria exist in these circumstances, so the core is not empty.