EconPapers    
Economics at your fingertips  
 

Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies

Olivier F. Morand () and Kevin Reffett
Additional contact information
Olivier F. Morand: University of Connecticut

No 02-085/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: 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)
Date: 2002-09-04
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://papers.tinbergen.nl/02085.pdf (application/pdf)

Related works:
Journal Article: Existence and uniqueness of equilibrium in nonoptimal unbounded infinite horizon economies (2003) Downloads
Working Paper: Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies (2001) Downloads
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:tin:wpaper:20020085

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().

 
Page updated 2019-09-20
Handle: RePEc:tin:wpaper:20020085