The general equilibrium properties of LM were first studied by Vanek (1970). A more rigorous and general analysis was provided recently by Dreze (1974). He uses the basic Walrasian model as developed by Debreu and introduces three important modifications. Firstly, maximization of value added per worker replaces maximization of profit as an objective for the firm, thereby yielding a new set of using as a starting point a given number of firms, Dreze allows for the creation of firms through free association of workers. This is a significant improvement in the general equilibrium methodology since in the Debreu model it remains unclear why there should be any firms at all. Thirdly, technological knowledge in that economy is assumed freely accessible to all, but all scare inputs (e.g. production sites, patens, etc.) are listed as available commodities for which LMF must pay rents.