Stone-Geary preferences and competitive equilibrium Does anybody know if a competitive equilibrium obtains under Stone-Geary preferences; are there multiple equilibria problems; do such preferences admit an analysis with more than one type of representative agents; any good+relevant resources on the subject?
This is a paper using a competitive monopolistic framework (in GE). It is an old paper by Stratz (1989). Recent work with Stone-Geary preferences relates to the issue of structural transformation following the work of Herrendorf, Rogerson and Valentinyi (2013), although there is considerable debate on whether these preferences appropriately capture the data. All these papers have a representative consumer, with expenditure shares changing over time due to growth.