Title

Gross substitutes and Immiserizing Growth

Document Type

Article

Publication Date

1986

Publication Title

Economics Letters

Department

Economics

Abstract

In a pure exchange economy immiserizing growth occurs when an increase in the endowment of one trader results in a new equilibrium where that trader has lower utility. This paper demonstrates that such perverse behavior is ruled out when excess demands satisfy a particular gross substitute condition.

Volume

21

Issue

4

pp.

353-356

ISSN

0165-1765