Replica Core Equivalence Theorem: An Extension of the Debreu-Scarf Limit Theorem to Double Infinity Monetary Economies

Ken Urai () and Hiromi Murakami ()
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Ken Urai: Graduate School of Economics, Osaka University
Hiromi Murakami: Graduate School of Economics, Osaka University

No 14-35-Rev.2, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: An overlapping generations model with the double infinity of commodities and agents is the most fundamental framework to introduce outside money into a static economic model. In this model, competitive equilibria may not necessarily be Pareto-optimal. Although Samuelson (1958) emphasized the role of fiat money as a certain kind of social contract, we cannot characterize it as a cooperative game-theoretic solution like a core. In this paper, we obtained a finite replica core characterization of Walrasian equilibrium allocations under non-negative wealth transfer and a core-limit characterization of Samuelson fs social contrivance of money. Preferences are not necessarily assumed to be ordered.

Keywords: Monetary Equilibrium; Overlapping Generations Model; Core Equivalence; Replica Econ- omy; Non-Ordered Preference (search for similar items in EconPapers)
JEL-codes: C62 C71 D51 E00 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2014-11, Revised 2015-05
New Economics Papers: this item is included in nep-dge, nep-gth, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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