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- W1572194001 abstract "Publisher Summary This chapter presents an extension of the second welfare theorem when both convexity and differentiability assumptions are violated. This theorem has asserted that the identity of the marginal rates of substitution and the marginal rates of transformation holds at a pareto-optimal allocation. However, this assertion has been formulated and proved by means of convex analysis, that is, a separation theorem. In the absence of convexity and differentiability assumptions, Guesnerie proved a theorem asserting that at a Pareto-optimal allocation, it is associated a nonzero price vector such that each consumer satisfies the first order necessary conditions for expenditure minimization and each firm satisfies the first order necessary conditions for profit maximization. The chapter also discusses different versions of the second welfare theorem that are in the spirit of the assertion of Guesnerie but differ from it in the way the necessary conditions and the marginal rule are mathematically formalized." @default.
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- W1572194001 date "1990-01-01" @default.
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- W1572194001 title "The Second Welfare Theorem in Nonconvex Economies" @default.
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- W1572194001 doi "https://doi.org/10.1016/b978-0-12-370182-4.50026-x" @default.
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