Fluctuations in overlapping generations economies
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Fluctuations in overlapping generations economies. / Tvede, Mich.
I: Journal of Theoretical Economics, Bind 9, Nr. 1, 2009, s. 1-17.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Fluctuations in overlapping generations economies
AU - Tvede, Mich
N1 - Paper id:: Article 16
PY - 2009
Y1 - 2009
N2 - In the present paper stationary pure-exchange overlapping generations economies with L goods per date and M consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that N-cycles exist for N less than or equal to L+1 and L less than or equal to M. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover it is sketched how the approach can be applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.
AB - In the present paper stationary pure-exchange overlapping generations economies with L goods per date and M consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that N-cycles exist for N less than or equal to L+1 and L less than or equal to M. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover it is sketched how the approach can be applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.
U2 - 10.2202/1935-1704.1533
DO - 10.2202/1935-1704.1533
M3 - Journal article
VL - 9
SP - 1
EP - 17
JO - The B.E. Journal of Theoretical Economics
JF - The B.E. Journal of Theoretical Economics
SN - 2194-6124
IS - 1
ER -
ID: 12325094