Local Determinacy of Prices in an Overlapping Generations Model with Continuous Trading

We characterize the determinacy properties of the intertemporal equilibrium for a continuous-time, pure-exchange, overlapping generations economy with logarithmic preferences. Using recent advances in the theory of functional differential equations, we show that the equilibrium is locally unique and that prices converge to a balanced growth path and are determined.

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Year of publication:	2014-10-07
Authors:	d'Albis, Hippolyte ; Augeraud-Véron, Emmanuelle ; Hupkes, Herman Jan
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Keywords:	Overlapping generations models ⋅ Local dynamics ⋅ Existence ⋅ Determinacy ⋅ Functional differential equations

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	C6 - Mathematical Methods and Programming
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011108670