On efficiency and local uniqueness in two-sector OLG economies

Jean-Pierre Drugeon, Carine Nourry and Alain Venditti

Mathematical Social Sciences, 2010, vol. 59, issue 1, 120-144

Abstract: We consider a two-sector overlapping generations model with homothetic preferences. Under standard conditions on technologies, upon large enough values for the share of first period consumption over the wage income, we prove that the dynamic efficiency and local uniqueness of the competitive equilibrium hold. On the contrary, for lower values of the share of first period consumption over the wage income which imply dynamic inefficiency of the steady state, local indeterminacy arises when the elasticity of intertemporal substitution in consumption is large enough.

Keywords: Two-sector; OLG; model; Efficiency; Local; uniqueness (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: On Efficiency and Local Uniqueness in Two-Sector OLG Economies (2010)
Working Paper: On Efficiency and Local Uniqueness in Two-Sector OLG Economies (2010)
Working Paper: On efficiency and local uniqueness in two-sector OLG economies (2009)
Working Paper: On efficiency and local uniqueness in two-sector OLG economies (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:59:y:2010:i:1:p:120-144

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