Space–time economies under free mobility:: Competitive Equilibria and efficiency

In this paper, a space–time sequence economy with money, storage and transaction /transportation costs of mobile commodities will be considered. Conditions on technologies and households′ characteristics will be derived to establish the existence of competitive equilibria under locational choice. The notion of Pareto efficiency under costly trading will be discussed and the question of (in-)efficiency of equilibria examined using a separation theorem. The model extends earlier work of the author Karmann (1981), Karmann (1982)] and others see Schweizer et al. (1976), Castello-Ruiz (1978)] to include time and extends also the model in Kurz (1974) to include space.