The paper "Competitive equilibria of economies with a continuum of consumers and aggregate shocks" by J. Miao provides an in-depth analysis of dynamic models of the economy with a continuum of agents and aggregate productivity shocks. In Section 3 the existence of a sequential competitive...

In this paper, we give a proof of existence of sequential competitive equilibrium in Krusell-Smith type economies with different kinds of agents, taxes, unemployment insurance, and endogenous labor choice. We also provide a formal construction of a family of shock processes exhibiting...