Equilibrium price dynamics in an overlapping-generations exchange economy
Paulo Brito () and
Rui Dilao
MPRA Paper from University Library of Munich, Germany
Abstract:
We present a continuous time overlapping generations model for an endowment Arrow-Debreu economy with an age-structured population. For an economy with a balanced growth path, we prove that Arrow-Debreu equilibrium prices exist, and their dynamic properties are age-dependent. Our model allows for an explicit dependence of prices on critical age-specific endowment parameters. We show that, if endowments are distributed earlier than some critical age, then speculative bubbles for prices do exist.
Keywords: Arrow-Debreu equilibrium; overlapping generations models; McKendrick model (search for similar items in EconPapers)
JEL-codes: D51 G12 J10 (search for similar items in EconPapers)
Date: 2006-10-31
New Economics Papers: this item is included in nep-cba and nep-dge
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Citations: View citations in EconPapers (3)
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https://mpra.ub.uni-muenchen.de/699/1/MPRA_paper_699.pdf original version (application/pdf)
Related works:
Journal Article: Equilibrium price dynamics in an overlapping-generations exchange economy (2010) 
Working Paper: Equilibrium price dynamics in an overlapping-generations exchange economy (2006) 
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:699
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