General Equilibrium with Increasing Returns

This monograph provides a formal and systematic exposition of results on the existence and optimality of equilibria in economies with increasing returns to scale.

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This monograph provides a formal and systematic exposition of results on the existence and optimality of equilibria in economies with increasing returns to scale. An equilibrium scale is constructed first by means of a precise formalization of consumers and firms, and the proof of an abstract existence result. The analysis then shifts to the study of specific normative and positive models which are particularizations of the general one, and to the study of the efficiency of equilibrium allocations. The book provides a unified approach of the topic, maintains a relatively low mathematical complexity, and is highly self-contained.