Hirano, Tomohiro and Toda, Alexis Akira (2024) On equilibrium determinacy in overlapping generations models with money. Economics Letters, 239. ISSN 0165-1765
Full text not available from this repository.Abstract
This paper provides a detailed analysis of the local determinacy of monetary and non-monetary steady states in Tirole (1985)’s classical two-period overlapping generations model with capital and production. We show that the sufficient condition for local determinacy in endowment economies provided by Scheinkman (1980) does not generalize to models with production: there are robust examples with arbitrary utility functions in which the non-monetary steady state is locally determinate or indeterminate. In contrast, the monetary steady state is locally determinate under fairly weak conditions.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.sciencedirect.com/journal/economics-le... |
| Additional Information: | © 2024 Elsevier B.V. |
| Divisions: | Centre for Macroeconomics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods and Programming > C62 - Existence and Stability Conditions of Equilibrium D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D53 - Financial Markets G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates |
| Date Deposited: | 24 May 2024 14:15 |
| Last Modified: | 10 Aug 2024 07:45 |
| URI: | http://eprints.lse.ac.uk/id/eprint/123636 |
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