On perfect equilibria in stochastic models of growth with intergenerational altruism (Q2490701)

This paper deals with a stochastic model of altruistic growth. The equilibrium concept associated with such a game is called Markov-stationary subgame-perfect equilibrium in pure strategies. The transition probability function is a convex combination of a finite family of probability measures depending on the state variable. Most examples are contained in such a transition structure. Moreover, there are no supermodularity assumptions on the utility function. Also some special cases in which the equilibrium policy is continuous and nondecreasing are discussed.