A dynamic equilibrium model of search, production, and exchange (Q690163)

Presented is a general equilibrium model of search, production and exchange with a continuum of infinite-lived agents and a continuum of commodities. The authors analyse the existence of a multiple steady state equilibrium and a multiple dynamic equilibrium in the economy with decreasing, constant, and increasing returns to scale. The authors deal with a nonmonetary model of the economy. Their results can potentially be applied to a monetary version of the model.