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Equilibrium price dynamics in an overlapping-generations exchange economy

Paulo Brito and Rui Dilão

Journal of Mathematical Economics, 2010, vol. 46, issue 3, 343-355

Abstract: An extension to the Yaari (1965)-Blanchard (1985) continuous time overlapping generations model for an endowment Arrow-Debreu economy with an age-structured population is presented. It is proved that Arrow-Debreu equilibrium prices are represented by a double linear integral equation, and depend on the age-distributions of population and endowments. For an economy with a balanced growth, and logarithmic utility, we prove that bubbles may exist if endowments are distributed earlier than some critical age.

Keywords: Overlapping; generations; models; Arrow-Debreu; equilibrium; McKendrick; model; Bubbles (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Equilibrium price dynamics in an overlapping-generations exchange economy (2006) Downloads
Working Paper: Equilibrium price dynamics in an overlapping-generations exchange economy (2006) Downloads
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