Part II : Infinite Horizon Economies

Working Paper Alfred P. Sloan School of Management Determinacy of Equilibrium in Infinite Horizon Economies: a Perspective Determinacy of Equilibrium in Infinite Horizon Economies: a Perspective

Rational Expectations Equilibria in Dynamic Economies with Interacting Agents

We consider general economies in which rational agents interact locally. The local aspect of the interactions is designed to capture in a simple abstract way social interactions, that is, socio-economic environments in which markets do not mediate all of agents’ choices, and each agent’s choice might be in part determined, for instance, by family, peer group, or ethnic group effects. We study s...

Convergence of trajectories in infinite horizon optimization

In this paper, we investigate the convergence of a sequence of minimizing trajectories in infinite horizon optimization problems. The convergence is considered in the sense of ideals and their particular case called the statistical convergence. The optimality is defined as a total cost over the infinite horizon.

Incomplete markets over an infinite horizon: Long-lived securities and speculative bub

This paper studies sequence economies over an infinite horizon with general security structures. Assumptions are given under which a pseudo-equilibrium exists for all economies and an equilibrium exists for a dense set of (appropriately parameterized) economies. Under these assumptions the indebtedness of the agents in equilibrium can be limited either by an explicit bound on their debts or by ...

Digitized by the Internet Archive in 2011 with Funding from Boston Library Consortium Iviember Libraries Working Paper Department of Economics Comparative Statics and Perfect Foresight in Infinite Horizon Economies

This paper considers whether infinite horizon economies have determinate perfect foresight equilibria. ¥e consider stationary pure exchange economies with both finite and infinite numbers of agents. When there is a finite number of infinitely lived agents, we argue that equilibria are generically determinate. This is because the number of equations determining the equilibria is not infinite, bu...