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Article Dans Une Revue Pacific journal of optimization Année : 2006

About the second theorem of Welfare economics with stock markets

Oussama Lachiri
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Résumé

This paper discusses necessary optimality conditions for multi-objective optimization problems with application to the Second Theorem of Welfare Economics. We use the extremal principle, since we consider non-convex sets and non-smooth functions. Particularly, we develop a slight generalization of the main result of Jofre--Rivera [9], which allows more flexibility in a stochastic economy with production and stock market. Formally, we define a stock market equilibrium through the necessary optimality conditions at a constrained Pareto optimal allocation. We show that the Second Theorem of Welfare Economics holds in a two-period framework. But, by mean of an example, we show that this later result is no longer true for multi-period economies.
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Dates et versions

halshs-00265691 , version 1 (19-03-2008)

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  • HAL Id : halshs-00265691 , version 1

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Jean-Marc Bonnisseau, Oussama Lachiri. About the second theorem of Welfare economics with stock markets. Pacific journal of optimization, 2006, 2 (3), pp.469-485. ⟨halshs-00265691⟩
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