An Intertemporal General Equilibrium Model with Continuous Changes in Endowments and Technology

An Intertemporal General Equilibrium Model with Continuous Changes in Endowments and Technology | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article An Intertemporal General Equilibrium Model with Continuous Changes in Endowments and Technology Elvio Accinelli, Armando García, Humberto Muñiz, Isaac Ortigoza This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7889999/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 21 Feb, 2026 Read the published version in International Journal of Dynamics and Control → Version 1 posted You are reading this latest preprint version Abstract In this article, we consider an intertemporal economy with privately owned production in which both technology and initial endowments change continuously over time. Firms maximize profits throughout the period under consideration, taking into account technological changes, while consumers, who are the owners or shareholders of these firms, maximize their utility over the same period, acknowledging that the value of their assets, their initial endowments, and the income they receive from their participation in firms all evolve continuously over time. As a result, we obtain an intertemporal set of Walrasian equilibria consisting of a price system and production and consumption plans which, although optimal in the long run, may give rise to temporary imbalances at different points in time, since the values these variables take at each moment may differ from those corresponding to the static Walrasian equilibria evaluated at that time. We also show that even when economic agents behave rationally and changes in technology and initial endowments follow a continuous transformation process, intertemporal prices as well as intertemporal equilibrium consumption and production plans may not evolve continuously. This discontinuity can give rise to economic crises which therefore emerge as inherent features of the intertemporal general equilibrium model Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 21 Feb, 2026 Read the published version in International Journal of Dynamics and Control → Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7889999","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":538497103,"identity":"59403c4c-5cf8-47b6-a120-09e8cfff9264","order_by":0,"name":"Elvio Accinelli","email":"","orcid":"","institution":"Autonomous University of San Luis Potosí","correspondingAuthor":false,"prefix":"","firstName":"Elvio","middleName":"","lastName":"Accinelli","suffix":""},{"id":538497104,"identity":"e20d3446-ac4a-4a35-b643-f5da7a08f560","order_by":1,"name":"Armando García","email":"","orcid":"","institution":"Universidad Autónoma Metropolitana","correspondingAuthor":false,"prefix":"","firstName":"Armando","middleName":"","lastName":"García","suffix":""},{"id":538497105,"identity":"215b26a4-7adc-41e5-883d-11e4eb60579e","order_by":2,"name":"Humberto Muñiz","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA5ElEQVRIiWNgGAWjYBACgwMMbAheAoMNkGRuIEaLAUxLGpBkJEULA8NhIrTcyE578HHPHzkGsTNmDx78OZ/Y33+w7QFjzmGcWuxv5G43nPHMwJhBOsfcIIHnduKMG4ntBozb0vDYkrtNmueAQWKDdI6ZRILE7cSGG4xtEozbbPBr+QPXYnAucf75gyAtEvi1MMC1JBxI3HAgkYAtZ95uN+w5YGzMJp1WJpFwINl4I8gvifj8cjx324MfB+Tk+KWTt0n++GMnO+/84WMPPm7DHWJwwIbCTiCsAbf2UTAKRsEoGAUMAAzhWi0sugvRAAAAAElFTkSuQmCC","orcid":"","institution":"Autonomous University of San Luis Potosí","correspondingAuthor":true,"prefix":"","firstName":"Humberto","middleName":"","lastName":"Muñiz","suffix":""},{"id":538497106,"identity":"4091d635-5dc2-4cb4-bf65-c4f6230d1a2f","order_by":3,"name":"Isaac Ortigoza","email":"","orcid":"","institution":"Autonomous University of San Luis Potosí","correspondingAuthor":false,"prefix":"","firstName":"Isaac","middleName":"","lastName":"Ortigoza","suffix":""}],"badges":[],"createdAt":"2025-10-17 23:38:07","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-7889999/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-7889999/v1","draftVersion":[],"editorialEvents":[{"content":"https://doi.org/10.1007/s40435-026-02031-2","type":"published","date":"2026-02-21T15:58:42+00:00"}],"editorialNote":"","failedWorkflow":false,"files":[{"id":94947620,"identity":"91a5f828-5a4c-4148-9ff4-f73ec38d253e","added_by":"auto","created_at":"2025-11-02 10:37:08","extension":"json","order_by":0,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":5367,"visible":true,"origin":"","legend":"","description":"","filename":"dec162e307e74a81a38aa1e028c40314.json","url":"https://assets-eu.researchsquare.com/files/rs-7889999/v1/deba21cbc8f3601092d320ae.json"},{"id":103251360,"identity":"c4cb5fb7-f4d9-400a-960e-b78ce27f23ca","added_by":"auto","created_at":"2026-02-23 16:08:20","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":644759,"visible":true,"origin":"","legend":"","description":"","filename":"AnIntertemporalgeneralequilibriummodel1.pdf","url":"https://assets-eu.researchsquare.com/files/rs-7889999/v1_covered_54a4f76c-1e3e-4228-a430-3a2e3b35f0ea.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"\u003cp\u003eAn Intertemporal General Equilibrium Model with Continuous Changes in Endowments and Technology\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"","lastPublishedDoi":"10.21203/rs.3.rs-7889999/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7889999/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eIn this article, we consider an intertemporal economy with privately owned production in which both technology and initial endowments change continuously over time. Firms maximize profits throughout the period under consideration, taking into account technological changes, while consumers, who are the owners or shareholders of these firms, maximize their utility over the same period, acknowledging that the value of their assets, their initial endowments, and the income they receive from their participation in firms all evolve continuously over time.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eAs a result, we obtain an intertemporal set of Walrasian equilibria consisting of a price system and production and consumption plans which, although optimal in the long run, may give rise to temporary imbalances at different points in time, since the values these variables take at each moment may differ from those corresponding to the static Walrasian equilibria evaluated at that time.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eWe also show that even when economic agents behave rationally and changes in technology and initial endowments follow a continuous transformation process, intertemporal prices as well as intertemporal equilibrium consumption and production plans may not evolve continuously. This discontinuity can give rise to economic crises which therefore emerge as inherent features of the intertemporal general equilibrium model\u003c/p\u003e","manuscriptTitle":"An Intertemporal General Equilibrium Model with Continuous Changes in Endowments and Technology","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-11-02 10:37:03","doi":"10.21203/rs.3.rs-7889999/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"72ca88d9-2537-4082-8b1a-6aea428d981d","owner":[],"postedDate":"November 2nd, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2026-02-23T16:05:14+00:00","versionOfRecord":{"articleIdentity":"rs-7889999","link":"https://doi.org/10.1007/s40435-026-02031-2","journal":{"identity":"international-journal-of-dynamics-and-control","isVorOnly":false,"title":"International Journal of Dynamics and Control"},"publishedOn":"2026-02-21 15:58:42","publishedOnDateReadable":"February 21st, 2026"},"versionCreatedAt":"2025-11-02 10:37:03","video":"","vorDoi":"10.1007/s40435-026-02031-2","vorDoiUrl":"https://doi.org/10.1007/s40435-026-02031-2","workflowStages":[]},"version":"v1","identity":"rs-7889999","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7889999","identity":"rs-7889999","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}