Determinacy of equilibrium in an overlapping generations model with heterogeneous agents (Q5931250)

Wellappointed with references to the existing literature and with interpretations of the obtained results the authors study the local determinacy properties of equilibrium paths for positive bequest and capital in economies with both altruistic and nonaltruistic dynasties. To get their results they discuss carefully a system of difference equations which characterizes the economic dynamic, use implicit function theorems and characteristic polynomials. Furthermore there are some examples to check the assumptions.