On the existence of sunspot equilibria in an overlapping generations model
نویسندگان
چکیده
منابع مشابه
Eliminating sunspot effects in overlapping generations models
We reappraise the robustness of sunspot effects in overlapping-generations models. Azariadis’s wellknown example economies have stationary, deterministic fundamentals (preferences, technologies, and endowments), yet sunspots affect multiple equilibria. And those equilibria are robust to common perturbations of underlying fundamentals. However, we find that judiciously splitting each of Azariadi...
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This paper offers an alternative approach to the existence of sunspot equilibria. The economy has a single perishable good and fiat money within an overlapping generations framework with two possible extraneous events. The analysis uses the dynamic adjustment of market prices during voluntary trade to establish paths of current spot prices whose limit points are rational expectations equilibria...
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In the companion paper [2], Balasko and Shell establish existence of competitive equilibrium for a pure-distribution, overlapping-generations economy without money (see, especially, Propositions (3.10) and (3.11) in Section 3). That argument is remarkably simple, but depends critically on some strong hypotheses concerning individual tastes and endowments. In particular, it is assumed that, in a...
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In an exogenous-growth economy with overlapping generations (OG) we analyse local stability of the balanced growth equilibria with respect to perturbations of consumption endowments, thought of as the “monetised” value of a government policy to individuals. We show that perturbed economies have a unique equilibium in the neighbourhood, that the equilibrium allocation expressed in terms of effic...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 1988
ISSN: 0022-0531
DOI: 10.1016/0022-0531(88)90094-4