Frequency of trade and the determinacy of equilibrium in economies of overlapping generations

Hippolyte d'Albis and Emmanuelle Augeraud-Véron

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: Demichelis and Polemarchalis highlighted the role played by the frequency of trade in the degree of indeterminacy of equilibrium in economies of overlapping generations. Assuming that time has a finite starting point and extends into the infinite future, they prove that the degree of indeterminacy increases with the number of periods in the life-span of individuals, which is assumed to be deterministic. We show that this result does not hold when individual longevity is represented by an exponential survival function: the degree of indeterminacy depends on individual preferences and monetary policy but is independent of the frequency of trade.

Keywords: overlapping generations; perpetual youth model; determinacy; continuous time; discrete time (search for similar items in EconPapers)
Date: 2013
Note: View the original document on HAL open archive server: https://hal.science/hal-00759208
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Citations: View citations in EconPapers (2)

Published in International Journal of Economic Theory, 2013, 9 (1), pp.85-100. ⟨10.1111/j.1742-7363.2013.12005.x⟩

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Related works:
Journal Article: Frequency of trade and the determinacy of equilibrium in economies of overlapping generations (2013)
Working Paper: Frequency of trade and the determinacy of equilibrium in economies of overlapping generations (2013)
Working Paper: Frequency of trade and the determinacy of equilibrium in economies of overlapping generations (2013)
Working Paper: Frequency of trade and the deterrminacy of equilibrium in economies of overlapping generations (2012)
Working Paper: Frequency of trade and the deterrminacy of equilibrium in economies of overlapping generations (2012)
Working Paper: Frequency of trade and the determinacy of equilibrium in economies of overlapping generations (2012)
Working Paper: Frequency of trade and the determinacy of equilibrium in economies of overlapping generations (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-00759208

DOI: 10.1111/j.1742-7363.2013.12005.x

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