Comparing Competitive Equilibria With Equilibria of Labor-Managed and Capital-Managed Economies in OLG Models

Bertrand Crettez

and

Pierre-Andr´e Jouvet

This paper compares a private ownership (competitive) economy, a labor-managed economy and a capital-managed economy in an overlapping-generations framework. Under standard and rather weak assumptions, the sets of equilibria for the two first economies are identical, in line with a result already shown in a static setting. We also prove that the set of competitive equilibria are included in the set of equilibria of capital-managed economies, but the converse is not true. However, using some smoothness assumptions, we show that an equilibrium of a capital-managed economy may be a competitive equilibrium.