Abstract
The second welfare theorem is generalized in two ways: (1) for an arbitrary economy, the pap er characterizes the set of allocations that can be supported by some price regime and some distribution of wealth and (2) a condition, we aker than convexity, is shown to suffice for supportability of each P areto optimal allocation and a general second welfare theorem cannot be proved if this condition is relaxed in any way. The paper also unc overs the conditions under which two economies with the same demand a nd supply functions will have identical Pareto optimal allocations. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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