Equilibrium price dynamics in an overlapping-generations exchange economy

Paulo B. Brito () and Rui Dilao

No 2006/27, Working Papers from Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.

Abstract: We present a continuous time overlapping generations model for an endowment Arrow-Debreu economy with an age-structured population. For an economy with a balanced growth path, we prove that Arrow-Debreu equilibrium prices exist, and their dynamic properties are age-dependent. Our model allows for an explicit dependence of prices on critical age-specific endowment parameters. We show that, if endowments are distributed earlier than some critical age, then speculative bubbles for prices do exist.

Keywords: Arrow-Debreu equilibrium; overlapping generations models; McKendrick model. (search for similar items in EconPapers)
JEL-codes: D51 G12 J0 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
Date: 2006
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Related works:
Journal Article: Equilibrium price dynamics in an overlapping-generations exchange economy (2010)
Working Paper: Equilibrium price dynamics in an overlapping-generations exchange economy (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:ise:isegwp:wp272006

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