Uniqueness of Markov equilibrium in stochastic OLG models with nonclassical production

Marten Hillebrand

No 46, Working Paper Series in Economics from Karlsruhe Institute of Technology (KIT), Department of Economics and Management

Abstract: This paper studies Markov Equilibria (ME) corresponding to recursive equilibria on natural state space in the stochastic OLG model extended to include non-additive utility, nonclassical production, and Markovian production shocks. Specifically, we provide sufficient conditions under which the ME in unique. It turns out that uniqueness for a large class of economies and that restrictions either on the consumption side or the production side alone are sufficient to garantuee this result. We also discuss additional properties such as continuity or smoothness of the equilibrium mappings and whether additional recursive or non-recursive euilibria exist.

Keywords: Markov equilibrium : Uniqueness; Overlapping generations; Nonclassical production; Markovian production shocks (search for similar items in EconPapers)
JEL-codes: C62 D51 E32 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-dge, nep-mic, nep-ore and nep-upt
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Uniqueness of Markov equilibrium in stochastic OLG models with nonclassical production (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kitwps:46

DOI: 10.5445/IR/1000031128

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