Free Disposal (free + disposal)

Distribution by Scientific Domains


Selected Abstracts


Joint Production with ,Restricted Free Disposal'

METROECONOMICA, Issue 1 2001
Christian Lager
A single production system with constant returns can produce any level and composition of demand by appropriate intensities of the cost-minimizing processes. Hence, in the long run, products can never be in excess supply and there exists a system of prices of production which is semipositive and independent of demand. These (and other) properties do not, in general, carry over to joint production systems where one or several processes produce two or more different products. The proportions in which products emerge will generally be different from those in which they are required for use. The usual approach to that problem is to apply the rule of ,free goods'. This assumption may be applied to goods which, if they are left where they are and as they are, cause neither costs nor benefits. But it cannot be applied to outworn machines, scrap, wastes or pollutants and is therefore not generally applicable. The present paper aims at finding conditions for the existence of cost-minimizing systems for cases where this crucial assumption either is completely absent or is substituted by the assumption of ,restricted free disposal', i.e. by the assumption that excess production is permitted up to a certain tolerated limit. It will be proved that the conditions for the existence of cost-minimizing systems with free disposal carry over to systems with restricted free disposal. [source]


Endogenous City Formation with Production Externalities: Existence of Equilibrium

JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 6 2007
COURTNEY LAFOUNTAIN
I show that equilibria exist in closed city-system models with production externalities if firms' production possibilities vary continuously with the source of the externality, are constant returns to scale in own inputs, include inaction, and satisfy free disposal; if firms have to employ their own inputs to produce output; if there is a finite number of firm types; and if some standard conditions on preferences and endowments are satisfied. This is the first model to include production externalities in the fully general equilibrium framework required for endogenous city formation. Thus, this result provides formal support for the conjecture that production externalities lead to urban agglomeration. [source]


Joint Production with ,Restricted Free Disposal'

METROECONOMICA, Issue 1 2001
Christian Lager
A single production system with constant returns can produce any level and composition of demand by appropriate intensities of the cost-minimizing processes. Hence, in the long run, products can never be in excess supply and there exists a system of prices of production which is semipositive and independent of demand. These (and other) properties do not, in general, carry over to joint production systems where one or several processes produce two or more different products. The proportions in which products emerge will generally be different from those in which they are required for use. The usual approach to that problem is to apply the rule of ,free goods'. This assumption may be applied to goods which, if they are left where they are and as they are, cause neither costs nor benefits. But it cannot be applied to outworn machines, scrap, wastes or pollutants and is therefore not generally applicable. The present paper aims at finding conditions for the existence of cost-minimizing systems for cases where this crucial assumption either is completely absent or is substituted by the assumption of ,restricted free disposal', i.e. by the assumption that excess production is permitted up to a certain tolerated limit. It will be proved that the conditions for the existence of cost-minimizing systems with free disposal carry over to systems with restricted free disposal. [source]