Stochastic OLG Models, Market Structure, and Optimality
نویسندگان
چکیده
منابع مشابه
Stochastic OLG Models, Market Structure, and Optimality
For a general class of pure exchange OLG economies under uncertainty, we provide a complete characterization of the efficiency properties of competitive equilibria when markets are only sequentially complete and the criterion of efficiency is conditional Pareto optimality. We also consider a particular case in which markets fail to be even sequentially complete and provide a characterization wh...
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– Presence of retired people (ie too old to work) implies a strong motive for saving – Competitive equilibrium is not always Pareto-Optimal, due to presence of an initial old generation. ∗ in absence of time-0 trading, initial old agents must consume their endowment, therefore young people must also consume theirs. – Potential role for money or government transfers to restore efficiency – Model...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 1999
ISSN: 0022-0531
DOI: 10.1006/jeth.1999.2543