Habit Persistence in Overlapping Generations Economies under Pure Exchange
نویسندگان
چکیده
منابع مشابه
Recursive Equilibrium in Stochastic Overlapping - Generations Economies
THE OVERLAPPING-GENERATIONS (OLG) model, introduced first by Allais (1947) and Samuelson (1958), is one of the two major workhorses for macroeconomic and financial modeling of open-ended dynamic economies. Following developments in the study of two-period economies, the OLG model has been extended to cover stochastic economies with production and possibly incomplete financial markets. As is the...
متن کاملWalras’ Law in Overlapping Generations Economies
Aiyagari (1992) shows that equilibria are nonoptimal for an overlapping generations economy if and only if Walras’ Law fails. We demonstrate that this failure represents an earnings opportunity exploitable by unsecured debt issue. When unsecured debt is issued, Walras’ Law holds. JEL Classification: D5, D6, D9
متن کاملEfficiency and prices in economies of overlapping generations
In a general economy of overlapping generations, I introduce anotion of uniform inefficiency, corresponding to the occurrence of a Paretoimprovement with a small uniform destruction of resources (Debreu [12]). Iprovide a necessary and sufficient condition for uniform inefficiency in termsof prices at a competitive equilibrium: an allocation is uniformly inefficient ifand onl...
متن کاملBusiness Cycle Phenomena in Overlapping Generations Economies with Stochastic Production
This paper analyzes economic uctuations in an overlapping generations economy with productive capital in which random shocks in aggregate productivity are present. Under speci c assumptions we obtain an explicit solution of the model. Applying random dynamical systems theory, we can prove that the long-run behavior of the economy is uniquely described by an asymptotically stable random xed poin...
متن کاملA characterization of inefficiency in stochastic overlapping generations economies
In this paper, we provide a characterization of interim inefficiency in stochastic economies of overlapping generations under possibly sequentially incomplete markets. With respect to the established body of results in the literature, we remove the hypothesis of two-period horizons, by considering longer, though uniformly bounded, horizons for generations. The characterization exploits a suitab...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 1998
ISSN: 0022-0531
DOI: 10.1006/jeth.1997.2349