Stationary Markov equilibria for overlapping generationsFelix Kubler and Herakles Polemarchakis () Economic Theory, 2004, vol. 24, issue 3, 623-643 Abstract: At a stationary Markov equilibrium of a Markovian economy of overlapping generations, prices at a date-event are determined by the realization of the shock, the distribution of wealth and, with production, the stock of capital. Stationary Markov equilibria may not exist; this is the case with intra-generational heterogeneity and multiple commodities or long life spans. Generalized Markov equilibria exist if prices are allowed to vary also with the realization of the shock, prices and the allocation of consumption and production at the predecessor date-event. (Stationary) Markov $ \epsilon $ -equilibria always exist; as $ \epsilon \rightarrow 0, $ allocations and prices converge to equilibrium prices and allocations that, however, need not be stationary. Copyright Springer-Verlag Berlin/Heidelberg 2004 Keywords: Stationary Markov equilibria; $ \epsilon $ -equilibria. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:24:y:2004:i:3:p:623-643 Ordering information: This journal article can be ordered from DOI: 10.1007/s00199-004-0523-3 Access Statistics for this article Economic Theory is currently edited by Nichoals Yanneils More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC. |
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