Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies

Olivier Morand () and Kevin Reffett

No 2001-02, Working papers from University of Connecticut, Department of Economics

Abstract: In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in the the state space is unbounded. Important examples of such economies are single vector 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 well 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 also present a computational algorithm that will prove asymptotically consistent when computing Markovian equilibrium.

JEL-codes: C62 D58 D62 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2001-04
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (8)

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Related works:
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 (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:uct:uconnp:2001-02

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