Fluctuations in Overlapping Generations Economies
Publikation: Working paper › Forskning
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Fluctuations in Overlapping Generations Economies. / Tvede, Mich.
Department of Economics, University of Copenhagen, 2009.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Fluctuations in Overlapping Generations Economies
AU - Tvede, Mich
N1 - JEL classification: D51, E32
PY - 2009
Y1 - 2009
N2 - In the present paper stationary pure-exchange overlapping generations economies with l goods per date and m consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that n-cycles exist for n = l +1 and l = m. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover the approach is applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.
AB - In the present paper stationary pure-exchange overlapping generations economies with l goods per date and m consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that n-cycles exist for n = l +1 and l = m. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover the approach is applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.
KW - Faculty of Social Sciences
KW - cycles
KW - sunspot equilibria
M3 - Working paper
BT - Fluctuations in Overlapping Generations Economies
PB - Department of Economics, University of Copenhagen
ER -
ID: 11528870