Generic Virtual Determinacy for Stationary Overlapping Generations

We formulate and prove generic virtual determinacy for a class of stationary overlapping-generations models that allows a continuum of differentiated commodities in continuous time. Since that class subsumes a finite list of commodities in discrete time, we prove for many of the leading examples of indeterminacy in the literature there exists a generic (residual) perturbation of preferences that ensures virtually determinacy. That is, there may be a continuum of equilibria in a neighborhood of a reference equilibrium, but consumers are indifferent about moving among those alternative equilibria. Such findings contradict the common conclusion that indeterminacy in those examples is robust.