Document Type

Technical Report


The paper is devoted to applications of modern variational analysis to the study of Pareto (as well as weak and strong Pareto) optimal allocations in nonconvex models of welfare economics with infinite-dimensional commodity spaces. Our basic tool is the extremal principle of variational analysis that provides necessary conditions for set extremality and may be viewed as a variational extension of the classical convex separation principle to the case of nonconvex sets. In this way we obtain new versions of the generalized second welfare theorem for nonconvex economies in terms of appropriate concepts of normal cones.

Number in Series



Applied Mathematics | Mathematics


Dedicated to the memory of Yuri Abramovich. This research was partly supported by the National Science Foundation under grant DMS-0072179 and also by the Distinguished Faculty Fellowship at Wayne State University.