Computing minimal state space recursive equilibrium in OLG models with stochastic production (Q2434970)

From the introduction: We present a new collection of order-theoretic methods operating in function spaces for constructing recursive equilibria (RE) for interesting classes of stochastic OLG models that often appear in applied work. As our focus is on short-memory or minimal state space RE, our approach complements many of the existing methods found in the literature (e.g., especially, the correspondence-based methods of \textit{Z. Feng} et al. [Int. Econ. Rev. 55, No. 1, 83--110 (2014; Zbl 1292.91123)]). Further, our methods are constructive, and we provide iterative procedures for constructing least and greatest minimal state space RE in all the cases we study. Additionally, we show how equilibrium comparative statics results on the space of economies can be easily be obtained using our monotone methods and computed. We also provide constructive arguments for characterizing the set of equilibrium limiting distributions (or stationary Markov equilibrium (SME)), and we provide a situation where we can conduct equilibrium comparative statics for the set of SME. Finally, in the last section of the paper, we extend our monotone map methods to economies where RE are not monotone.