Add to ORKGThis paper proves the existence of competitive equilibrium in a single-sector dynamic economy with heterogeneous agents, elastic labor supply and complete assets markets. The method of proof relies on some recent results concerning the existence of Lagrande multipliers in infinite dimensional spaces and their representation as a summable sequence and a direct application of the inward boundary fixed point theorem.Optimal growth model, Lagrange multipliers, competitive equilibrium, individually rational pareto optimum, elastic labor supply.