Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies
Olivier F. Morand () and
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Olivier F. Morand: University of Connecticut
No 02-085/2, Tinbergen Institute Discussion Papers from Tinbergen Institute
In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the state-space is unbounded. Important examples of such economies are single-sector growth models with production externalities, valued fiat money, monopolistic competition, and/or distortionary government taxation. Although sufficient conditions for existence and uniqueness of Markovian equilibrium are weIl known for the compact state space case, no similar sufficient conditions exist for unbounded growth. This paper provides such a set of sufficient conditions, and presents a computational algorithm that will prove asymptotically consistent when computing Markovian equilibrium.
Keywords: Equilibrium; Dynamic Models; Unbounded; Nonoptimal (search for similar items in EconPapers)
JEL-codes: C62 D58 D62 (search for similar items in EconPapers)
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Journal Article: Existence and uniqueness of equilibrium in nonoptimal unbounded infinite horizon economies (2003)
Working Paper: Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020085
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