Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 an Overlapping Generations Model Core Equivalence Theorem

The classical Debreu-Scarf core equivalence theorem asserts that in an exchange economy with a finite number of agents art allocation (under certain conditions) is a Walrasian equilibrium if and only if it belongs to the core of every replica of the exchange economy. The pioneering work of P. Samuelson has shown that such a result fails to be true in exchange economies with a countable number of agents. This paper presents a Debreu-Scarf type core equivalence theorem for the over­ lapping generations (OLG) model. Specifically, the notion of a short-term core al­ location for the overlapping generations model is introduced and it is shown that (under some appropriate conditions) an OLG model allocation is a Walrasian equi­ librium if and only if it belongs to the short-term core of every replica of the OLG economy. AN OV ERLAPPING GENERATIONS MODEL CORE EQUIVALENCE THEOREM* Charalamhos D. Aliprantis and Owen Burkinshaw We show that in the overlapping generations model an allocation is a Walrasian equilibrium if and only if the allocation belongs to the short-term core of every repli­ cation of the economy-and hence, we establish a core equivalence theorem for the overlapping generations model.