Sraffian indeterminacy of steady-state equilibria in the Walrasian general equilibrium framework

Naoki Yoshihara () and Se Kwak ()
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Se Kwak: University of Massachusetts Amherst

No SDES-2023-2, Working Papers from Kochi University of Technology, School of Economics and Management

Abstract: In contrast to Mandler’s (1999a; Theorem 6) generic determinacy of steady-state equilibria, we first show that any non-trivial steady-state equilibrium is indeterminate under a general overlapping generation economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a general model of every generation’s utility function and individual optimization program to the overlapping generation economy, which also verifies that Mandler’s (1999a; section 6) claim on generic determinacy is invalid. We also argue the distinctiveness of our results in comparison with the standard literature, like Calvo (1978), of overlapping generation indeterminacy.

Keywords: Sraffian indeterminacy; functional income distribution; general equilibrium framework (search for similar items in EconPapers)
JEL-codes: B51 D33 D50 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2023-05, Revised 2023-05
New Economics Papers: this item is included in nep-dge, nep-hme, nep-pke and nep-upt
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Citations: View citations in EconPapers (1)

Published in SDE Series, May 2023, pages 1-22

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http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2023-2.pdf First version, 2023 (application/pdf)

Related works:
Journal Article: Sraffian indeterminacy of steady‐state equilibria in the Walrasian general equilibrium framework (2024)
Working Paper: Sraffian indeterminacy of steady-state equilibria in the Walrasian general equilibrium framework (2022)
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