Active Intermediation in Overlapping Generations Economies with Production and Unsecured Debt

Mark Pingle () and Leigh Tesfatsion ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: "Active Intermediation in a Monetary Overlapping Generations Economy" ( ps,297K) ( pdf,600K ), (with M. Pingle), Economic Report No. 42, Iowa State University, April 1997. Final version appears in Macroeconomic Dynamics 2 (1998), pp. 183--212. Abstract: This study demonstrates that the reason for the failure of the first welfare theorem in the overlapping generations model with production and unsecured debt by Tirole (Econometrica, 1985) is that intermediation is modelled as a purely passive coordination activity implemented by a Walrasian Auctioneer. When intermediation is instead modelled as a contestable activity carried out by a corporate intermediary owned by consumer-shareholders and operated in their interest, every equilibrium is Pareto efficient.

JEL-codes: C6 E2 E4 (search for similar items in EconPapers)
Date: 1998-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Macroeconomic Dynamics 1998, vol. 2, pp. 183-212

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: ACTIVE INTERMEDIATION IN OVERLAPPING GENERATIONS ECONOMIES WITH PRODUCTION AND UNSECURED DEBT (1998)
Working Paper: Active Intermediation in Overlapping Generations Economies with Production and Unsecured Debt (1998)
Working Paper: Active Intermediation in Overlapping Generations Economies with Production and Unsecured Debt (1998)
Working Paper: Active Intermediation in Overlapping Generations Economies with Production and Unsecured Debt (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:1228

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().