A stability problem with nonstationary overlapping generations equilibria
Overlapping generations models are characterized by severe market incompleteness. Future generations are unable to signal their demands on present markets. As a consequence, exogenous shifts in traders' characteristics may induce delayed reactions. The main theorem states that if preferences take a certain form every nonstationary equilibrium is subject to such delayed reactions. The proof relies on a transversal density argument. ``The possibility of delayed reactions reinforces the intuitive implausibility of nonstationary fulfilled expectations equilibria. In the absence of stationary equilibrium, disequilibrium may be a more plausible outcome than nonstationary equilibrium. (p. 432)
- On stationary overlapping generations models
- On stationary 3-period overlapping generations models
- Stationary monetary equilibria in overlapping generations models with incomplete markets
- Stationary equilibria in an overlapping generations economy with stochastic production
- On dynamics and the core of OG models
- Nonmonetary steady states in stationary overlapping generations models with long lived agents and discounting: Multiplicity, optimality, and consumption smoothing
- Disequilibrium dynamics with naive agents in the overlapping generations model with money
- Competitive equilibria in overlapping generations experiments
- Existence, uniqueness, and stability of equilibrium in an overlapping- generations model with productive capital
- Time and uncertainty in overlapping generations economies
- Stationary equilibrium transition rules for an overlapping generations model with uncertainty
- Indeterminacy of stationary equilibrium in stochastic overlapping generations models
This page was built for publication: A stability problem with nonstationary overlapping generations equilibria
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q1111450)
