Debt, deficits and finite horizons: The stochastic case

Roger Farmer, Carine Nourry and Alain Venditti

Economics Letters, 2011, vol. 111, issue 1, 47-49

Abstract: We introduce aggregate uncertainty and complete markets into Blanchard's (1985) perpetual youth model. We derive a simple expression for the pricing kernel that can be used to close a variety of equilibrium models in which the set of agents changes over time.

Keywords: Overlapping; generations; Perpetual; youth; model; Pricing; kernel; Aggregate; uncertainty (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Debt, deficits and finite horizons: the stochastic case (2009)
Working Paper: Debt, Deficits and Finite Horizons: The Stochastic Case (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:111:y:2011:i:1:p:47-49

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